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Petrofarhang CEO: Dena-Sabalan Integration Revamps Investments

Petrofarhang CEO: Dena-Sabalan Integration Revamps Investments
(Sunday, November 3, 2024) 15:00

TEHRAN (NIPNA) - In a strategic portfolio realignment, the integration of the Dena project into Sabalan Petrochemical has been cited as Petrofarhang's most significant investment reform to date. CEO Javad Zarepour stated that the integration, aimed at streamlining operations, achieving secure financing, and accelerating project completion, has successfully met all three objectives.

According to Petrofarhang's public relations office, Zarepour recently visited eight subsidiaries in Bushehr province, where he reviewed project advancements, engaged with executives, and emphasized sustainable wealth creation for educators, along with plans to enter downstream petrochemical industries.

During a site visit to Sabalan Petrochemical, where he met with CEO Reza Karimi and senior staff, Zarepour highlighted the company’s 200% growth in operational profit for fiscal year 2023-2024. He underscored Petrofarhang's overarching goal of creating long-term wealth for the Cultural Reserve Fund members, with diverse product lines and sustained profitability high on the agenda for the next fiscal year.

Zarepour noted that, through a shift in operational strategies and the concerted efforts of managers and employees, four out of five subsidiaries that had reported operational losses have now returned to profitability. “We anticipate a record-breaking year ahead for Petrofarhang,” he said.

Following a two-hour field inspection of Sabalan Phase 2 (Dena Project), Zarepour affirmed that daily monitoring of project progress has been implemented. "The integration of the Dena Project into Sabalan Petrochemical stands as one of the most strategic moves in recent years, activating all operational fronts."

Petrofarhang has also received preliminary approvals to enter downstream sectors, with one major project soon to launch. This development aims to convert methanol from Sabalan and Kimia companies into high-value products, enhancing Iran's foreign exchange earnings.

Operational Gains at Kimia and Marjan

At Kimia Pars Middle East Petrochemical, Zarepour addressed production challenges due to seasonal gas cuts and announced plans for a concurrent overhaul. “With capacity exceeding 100%, Kimia can contribute significantly to national foreign exchange,” he said.

Meanwhile, operational profit at Marjan Petrochemical surged 83% in the first half of 2024, attributed to improved production and marketing processes, as well as cost optimization strategies.

Siiraf Energy Project Progresses Amid Financial Extensions

During a visit to Siiraf Energy in Dayyer, Zarepour observed a project now revitalized after overcoming historical financial and operational setbacks. “With a recent 18-month extension on the project's credit line, we are advancing steadily towards completion,” he said.

Lavvan Chemical Project to Break Ground

Projects at Lavvan Chemical will commence soon, transforming methanol from Petrofarhang companies into acetic acid, vinyl acetate monomer, and synthetic ethanol. This aims to insulate the holding from international market fluctuations, providing long-term financial security.

Outlook for a Record-Breaking Year

With an expanding portfolio, Petrofarhang is poised to become one of Iran’s most diverse petrochemical holdings, with new projects positioned to meet both national and international market demands. Zarepour emphasized a growth-focused management approach, citing record operational milestones in 2024 that set the stage for an even more robust financial performance in the coming year.

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