Aljubail News

#Advanced : Inclusion Tadawul in MSCI reflects the implementation of the Financial Sector Development Program of the Kingdom’s 2030 Vision

Jubailttday – Jubail

Advanced Petrochemical Company (Advanced) is delighted that Saudi Stock Exchange (Tadawul) has been included in MSCI EM Index. We congratulate our prudent government on this economical achievement, and we also congratulate Tadawul on this great achievement which reflects the implementation of the Financial Sector Development Program of the Kingdom’s 2030 Vision and the extent of competency that Tadawul has reached among the international markets, a matter which represents an unprecedented step for the Kingdom of Saudi Arabia.

Advanced is also very proud to be among the Saudi listed companies which have been included in the MSCI EM Index and considers this as a significant opportunity to our company as well as all Saudi companies to demonstrate our capabilities, a matter that boosters a positive image to the international investors and contributes in expanding our business range in a positive way by raising competition to include local and global companies in the same sector.

We take this opportunity to give highlights on Advanced Petrochemical Company which started its business in 2008 in Jubail Industrial City in the Eastern Region of Saudi Arabia. Advanced adopts best practices in corporate governance that meet the requirements of the Capital Market Authority (CMA) and recognizes the international principles and standards that aim at ensuring the rights of both investors and stakeholders.

Advanced has been able within a short period to be among the best companies in the petrochemical industry in terms of safety, quality and maintaining high levels of operational efficiency for the production of propylene and polypropylene, which made Advanced to be a benchmark in the operational excellence among petrochemical companies.

It is worth noting that Advanced has accomplished many achievements in the field of safety, such as: completion of 16 million safe man-hours without lost time injury during the 11 years of its operational life; receiving the accreditation from the British Royal Council for Safety and Accidents Prevention (Golden Award) for four (4) consecutive years from 2016 to 2019; and has also received the Award from Royal Commission in Jubail for being among the best three companies in environmental compliance standards. In the field of operation, Advanced has achieved the highest level of capacity utilization and on-stream factor for the polypropylene plant in 2018.

The company works according to strategic plans set up by the board of directors whether in managing the operational processes of the existing plants or in evaluating and assessing some of the available opportunities for future expansions which maximize the rights of its shareholders and contribute to the development of the Kingdom’s national economy. The company has studied several investment projects inside and outside the Kingdom and has entered into investment partnerships with major international companies in the field of petrochemical industry by investing through its investment arm, Advanced Global Investment Company, a subsidiary of Advanced, in a joint venture project with SK Gas company, a South Korean company,  which resulted in the establishment of SK ADVANCED Company to establish, own and operate a PDH plant for the production of propylene in the Republic of South Korea with a design capacity of 600,000 metric tons per year, which started its commercial operation on 16 May 2016. SK Advanced has also signed a joint venture agreement with Polymerae Ltd., a South Korean company, to establish a plant for the production of Polypropylene in the Republic of South Korea with a design capacity of 400,000 metric tons per year, and the commercial operation of the Polypropylene plant is expected to begin in 2021.

It is also worth mentioning that Advanced Global Investment Company has obtained the approval of the Ministry of Energy, Industry and Mineral Resources for the allocation of the required feedstock for setting up a Propane Dehydrogenation (PDH) unit (to produce Propylene) and Polypropylene unit (to produce PP) with a capacity of 750,000 Tons each per annum (the “Project”), in Jubail Industrial City, in the Kingdom of Saudi Arabia, based on which the company has signed two memorandums of understanding with the Korean SK Gas Company: the first memorandum of understanding is for the development of a Propane Dehydrogenation (to produce Propylene) and Polypropylene (to produce PP) Project in Jubail Industrial City in the Kingdom of Saudi Arabia, with estimated total cost of US$ 1.8 billion (SR 6.75 billion) and the second memorandum of understanding is for the development of a Polypropylene Compounding (to produce PP Compounds) Unit in Jubail Industrial City in the Kingdom of Saudi Arabia. The Company has also signed a third memorandum of understanding with the Korean SK Gas Company to conduct a detailed feasibility study for a state of the art mixed feed or liquid cracker along with downstream products in the Kingdom of Saudi Arabia.

Advanced has a strong financial position and positive financial indicators that enable the company for continuous growth and enhance its position in the local and global markets. The company adopts quarterly dividend distribution at a fixed rate as determined by the board of directors, and Advanced is considered to be one of the best companies that distribute the highest percentage of dividends compared to the other listed companies in the market, as the quarterly dividend distribution rate in 2018 represented 7% of the nominal value of the share with the annual dividend rate represented 28% of the nominal value of the share.

The board of directors of Advanced Petrochemical Company gives a great attention to support Responsible Care Program and Corporate Social Responsibility Programs that seeks to fulfill and care for all activities.

  Khalifah Al-Mulhim

Chairman

ENG. Fahad Al-Matrafi

CEO

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