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Petrofarhang Encouraged to Expand Downstream Industries

Petrofarhang Encouraged to Expand Downstream Industries
(Monday, November 25, 2024) 16:58

TEHRAN (NIPNA) – Ali Sadeghi, CEO of the Teachers' Reserve Fund Institute, emphasized the need for Petrofarhang Holding to venture into downstream petrochemical industries and other lucrative sectors to maximize value addition.

He urged petrochemical company managers to accelerate operational plans and the completion of ongoing projects.

Key Takeaways from the Meeting

  1. Priority on Financial Resources and Guarantees:
    Sadeghi highlighted the importance of securing funding and guarantees for projects and emphasized inter-holding collaboration for leveraging specialized capabilities in areas like finance, investment, and services.
  2. Clarifying Share Ownership:
    He called for resolving issues with pending company shares and underlined performance-based evaluation as the criterion for retaining or appointing managers.
  3. Efficiency in Financial Operations:
    Stressing the urgency of financial solutions, he stated projects must not stall due to funding challenges. He demanded transparency in managerial payments to safeguard public funds.
  4. Expanding Business Focus:
    The CEO criticized the narrow focus of SITCO, Petrofarhang's trading arm, on methanol sales. He advocated for broader activities, including exports and imports, while addressing logistical challenges like the lack of ships and storage facilities.
  5. Upstream Gas and New Ventures:
    Sadeghi urged increased participation in upstream gas projects, calling them essential for long-term growth.

Petrofarhang's Financial Milestones and Achievements

Zarepour, CEO of Petrofarhang Holding, shared the following:

  • A 221% increase in net profit for the fiscal year ending September 2023.
  • Integration of the Dena project with Saba Petrochemical resolved major risks and enabled significant financing progress.
  • Methanol production rose by 41%, achieving the highest production record to date.
  • Funding highlights included:
    • IRR 2 trillion from capital markets for Dena project completion.
    • EUR 17 million from Germany’s EIH Bank.
    • Resumption of a 440-bed hotel project in Assaluyeh after 8 years, set for completion by 2026.

Petrofarhang's transformative financial strategies and operational advancements underscore its commitment to creating sustainable wealth for stakeholders, especially educators.


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