Executive director of the Arya Sasol Polymer Company (ASPC), Mohammad-Reza Heidarzadeh, has announced plans to increase the company’s production and sales in the new Persian year.
“1 million and 191 thousand tonnes of product are estimated to be sold this year, breaking previous ASPC sale records,” the executive director said, adding that “the achievement of positive outcomes is due to efforts of each and every ASPC employee and the company’s board of directors”.
Heidarzadeh made the comments at the annual and extraordinary general meetings of the ASPC on April 17th, 2023. The meetings were held examining the company’s performance in the previous year.
Pointing that the ASPC complex receives ethane from the Pars Petrochemical company, Heidarzadeh added: “this complex has an annual production capacity of 1,100,000 tonnes of ethylene, 375,000 tonnes of light polyethylene, 375,000 tonnes of medium and heavy polyethylene and 100,000 tonnes of +C3”.
Heidarzadeh added that the company sold more than 1,784,000 tonnes in the previous Persian year. “972,000 tonnes of ethylene, 369,000 tonnes of light polyethylene, 351,000 tonnes of medium and heavy polyethylene and 92 thousand tonnes of +C3 products were among the ASPC’s output,” he said.
Speaking about the company’s sales in the past year, Heidarzadeh said: “Last year, with a 3% increase in sales, the company received a record 27,400 billion tomans in revenue”. The ASPC manager added that the company achieved a gross profit of 10,700 billion tomans, pointing to a profit margin of 39% and a net profit of 11,000 billion tomans.
Reviewing the company’s revenues, Heidarzadeh elaborated on factors negatively and positively affecting the company’s revenue: “The decrease of ethane prices and the increase of the currency exchange rates are among factors which have boosted revenue. This is while a fall in global product sales, the increasing cost of secondary services, tax and government budget law requirements, the 122-day shutdown of a client company’s ethylbenzene and styrene monomer unit and GRP water pipeline repairs were among external factors that negatively affected profits. Such factors will be compensated next year,” stressed Heidarzadeh.
Increase in Direct Sales
Heidarzadeh also enumerated certain future measures aimed at increasing the company’s profits, such as:
- Increasing direct sales with the objective of obtaining a higher profit margin than what is obtained through sales agents
- Maximizing production and sales
- Replacement of a cooling conduit
- Planning for the sale of excess ethylene until the operation of a new ethylene-consuming unit
- Generating income through the company’s Innovation & Knowledge-Enterprise Center along with commercializing existing technical knowledge in the company
- The construction of a 10th furnace for the olefin unit with the goal of increased production sustainability
The ASPC manager also pointed to the company’s new 300,000-tonne polyethylene project and said: “200,000 tonnes of ethylene will be allocated from the ASPC complex’s ethylene production output and 100,000 tonnes from outside the complex”. He added that a 165,000 tonne C3+ separation project will also rely on 100,000 tonnes supplied from the ASPC complex and 65,000 tonnes from external suppliers. “The completion of these projects will lead to an annual increase of 110 million dollars in revenue, starting in the next new Persian year of 1403 (March 2024),” Heidarzadeh said.
Stating that the ASPC ranked 39th in Tehran’s Stock Exchange with an initial public offering worth 30 billion tomans in May 27, 2020, the ASPC manager added: “the company ranked 22nd with a market value of 82,000 billion tomans in March 2021 (end of Persian year of 1399), ranked 16th with a market value of 105 thousand billion tomans at the end of March 2022 (end of Persian year of 1400) and ranked 13th with a market value of 161 thousand billion tomans at the end of March 2023 (end of Persian year 1401), thanks to the efforts of our colleagues”.
Climbing 3% Higher than Total Stock Market Index Performance
“The total stock market index growth in 1401 (March 2022 until March 2023) was 62%, yet ASPC was able to achieve a return of 65%, attaining performance 3% higher than that of the stock market index,” Heidarzadeh said.
The ASPC manager elaborated the following as the Arya Sasol’s specific objectives for the new Persian year:
- Continued maximum sustainable production and sales, breaching the company’s highest production records
- Production of new grades of polymer products
- Identification of new export markets in terms of direct sales
- Continuation of the company’s activities in line with environment protection and social responsibilities
- Expansion of the Innovation & Knowledge-Enterprise Center
Heidarzadeh added that the company seeks a 10 percent production increase in the following year, reaching 1,959,000 tonnes – marking a 175,000-tonne increase compared to the previous year.
He continued: “Concluding the year of 1400 (ending March 2022), the ASPC had attained an annual sale of more than 1,084,000 tonnes. In 1402 (ending March 2024), it is estimated that 1,191,000 tonnes will be sold, breaking Arya Sasol’s all-time record and selling 107,000 tonnes more than the previous year, marking a 10-percent increase”.
Closing the company’s annual ordinary general assembly, a 90% profit distribution along with 756 tomans per ASPC stock exchange share was approved. An extraordinary general assembly was also held amending article 19 of the company’s statute in accordance with the format provided by Iran’s Securities and Exchange Organization. The amendment is to be included in the company’s future statute.