The Persian Gulf Petrochemical Industries Company earned $2.4 billion from petrochemical export in the first half of the current Iranian year (March 21-Sept. 22), managing director of the company said.
“PGPIC’s performance improved during the period compared with the first six months of last year as it increased its operating income by 71%, consolidated operating profit by 164%, raised net profit by 148% and its earnings per share grew by 146%,” Jafar Rabiei was also quoted as saying by the Oil Ministry’s news agency Shana.
Speaking at the annual general assembly of the company on Sunday, the company’s chief said PGPIC is now ranked 37th in the world, second in the Middle East after SABIC and almost unrivaled in the country in terms of sales.
“The company has been first in the country for several years in such indices as sales index, market value, export volume, profitability and generation of value added,” he said.
According to Rabiei, the company has invested over $2.3 billion in various projects in the past three years, despite sanctions imposed by the US on the company.
In May 2018, the US pulled out of the nuclear deal signed between Iran and six world powers in 2015 and later imposed new sanctions.
The US Treasury Department in June 2019 announced new restrictions on Iran's petrochemical sector that applied to PGPIC and 39 of its subsidiaries and foreign agents.
This slowed down the progress of PGPIC projects but did not dislodge it because domestic companies and manufacturers have been filling the gaps and supplying a major part of the equipment.
“The company produced 28 million tons of various petrochemical products last year,” Rabiei said, adding that with the completion of the ongoing projects, the figure is expected to reach 50 million tons per year in six years.
As Iran’s largest petrochemical company with 60 subsidiaries, PGPIC accounts for around 42% of the national petrochemical production, which is about 70 million tons per year. It also accounts for 41% of Iran's petrochemical exports.
PGPIC is a public holding company that manages natural gas processing plants and chemical factories, as well as oil and polymer companies.
Key Role of Petrochem Industry
The petrochemical industry has played a key role in Iran’s economic growth, as it creates value-added and reduces the sale of oil and gas on which the economy has been dependent for decades.
With abundant hydrocarbon reserves and new private sector investments, Iran is working hard to maintain its global status in the key sector and broaden its scope.
A large variety of petrochemicals (350 types) are produced in Iran, for which there is high international demand. They are exported to 30 Asian, European and South American countries.
Iran has invested over $53 billion in the industry and total investment will reach $93 billion by 2025.
According to plans, annual petrochemical production capacity would cross 100 million tons by 2021 and reach 130 million tons four years later.
The petrochemical sector is expected to generate more than $25 billion by 2022 and $37 million by 2025.
Currently, 50 projects are underway across the country to increase petrochemical output and help develop the downstream sector.
According to the National Petrochemical Company, 67 petrochemical plants across the country received 40 million tons of feedstock, including condensates, ethane, natural gas and naphtha, in the last fiscal year, which was equivalent to 1 million barrels of crude per day. The figure is expected to surpass 2 million barrels per day in six years.
With the inauguration of new complexes, the number of petrochemical plants will reach 77, up 15% compared to the present.
