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00:00 I would like to take a look at the results of the survey.
00:02 We have with us from Jubeil, Mr. Khalifa bin Abdul Latif Al-Milham,
00:06 President of the Board of Directors of the Petrochemicals Company.
00:09 Mr. Khalifa, welcome to our studio and thank you for being here.
00:13 Let's start with the results.
00:14 In the third quarter, the performance was good, 67%.
00:18 But the financial indicators showed that there was a decline in revenues for this period
00:23 compared to the previous year, which was almost 9.5%.
00:28 What made the profits and what caused the pressure on the wills?
00:32 The wills were low.
00:42 There was a maintenance of some of the plants,
00:50 and the production lines were low to improve efficiency.
00:58 This reduced the sales.
01:05 But, of course, compared to the previous quarter,
01:12 the main reason was the decline in the product prices, which decreased by about 9%.
01:23 This was despite the decline in the prices of the metals,
01:31 but the decline in the sales was the main factor
01:39 that caused the decline in the profits.
01:44 Also, the loss in the SK advance,
01:52 which is what caused the decline in the profits.
01:57 God willing, this is the reason.
01:59 We can ask about the propane and propylene,
02:05 since there was a decline in this period.
02:09 How much do you expect this decline to continue, Mr. Khalifa?
02:12 How much can you get on competitive prices at this stage
02:17 for propane and propylene from foreign markets?
02:20 We buy propane from Aramco,
02:28 and this is a fixed price that Aramco announces every month.
02:33 This is a change.
02:35 In the winter, the prices usually go up
02:42 because of the demand for propane to heat up,
02:46 and this has affected us a little.
02:49 God willing, we hope to increase the price,
02:53 even if it is small, in the sales prices,
02:56 to compensate for the increase in the profits.
03:00 These are the reasons.
03:03 As for the shipping prices,
03:05 it is clear that you were able to achieve a kind of decrease
03:08 in shipping costs by more than 68%, Mr. Khalifa.
03:12 Do we expect that the shipping prices will continue?
03:15 What are the expectations for the prices?
03:18 The shipping prices have decreased from the year to this year.
03:25 Of course, there was a big increase in shipping prices this year,
03:30 and this was due to the unorganized supply chains at that time.
03:39 Now, the prices have settled on the current prices,
03:43 which are considered good prices for us.
03:47 We hope that the decrease will be small,
03:50 and that the prices of oil will not go up much.
03:59 But our expectations are that the prices will remain at this range.
04:08 We expect a complete recovery in the fourth quarter, Mr. Khalifa,
04:13 for the oil and chemical sector,
04:15 and especially that we want to see good numbers from China,
04:18 which means that the growth rates have returned after the coronavirus.
04:23 Do you think that the demand will be compensated for
04:26 by some of the pressures that the sector has seen in the past?
04:29 There are big expectations in the global situation
04:37 in terms of economic growth.
04:41 China, as you mentioned, may improve,
04:45 but it's not a big improvement.
04:49 There are no repercussions on the prices of oil and chemicals.
04:59 I expect that the decline will continue in the next three or six months.
05:08 After that, I think things can start to improve.
05:15 But in the coming period, there will be uncertainty
05:20 and it will be difficult to expect what may happen,
05:25 especially in the American economy and the prices of goods.
05:30 All these factors, and of course the geopolitical situation in Europe
05:40 and the Middle East,
05:42 all of this will affect the market's uncertainty and uncertainty.
05:48 God willing, things will continue.
05:53 There has been an improvement in the global economy,
05:57 and God willing, prices will improve.
05:59 How much has the benefit affected you during this period?
06:08 You have also made an agreement with the Bank of Saudi Arabia
06:15 to maintain the export and import of goods.
06:18 This is to protect you from the risks of international buyers.
06:23 How much will this help you?
06:28 Of course, there is no doubt that it will help a lot.
06:32 The interest rates may have had an effect, but not that effect,
06:37 because we are trying to limit the use of banking services,
06:42 even if they have increased during this period.
06:46 But all of this is taken into consideration.
06:50 With time, God willing, with the payment of these loans,
06:54 the interest rates will decrease.
06:59 God willing, this will help in the future.
07:04 We wish you good luck.
07:06 Mr. Khalifa bin Abdul Latif Al-Malham,
07:08 President of the Board of Directors of the Saudi Petrochemicals
07:11 Company, you were with us from the industrial mountains.
07:14 Thank you.