Riyadh-Mubasher: Demand for petrochemicals is ‘sluggish’ compared to the last period, and the industry is facing some challenges including the commercial alliances which took place between North America and Europe, which will weigh on the global petrochemical industry, said Tasnee CEO Multaq Al-Morished.

He added that the American companies will be able to access the European market without taxes, noting that among the challenges facing the industry is the U.S. shale gas and development of the technologies used in producing petrochemicals from coal in China.

Commenting on his company’s second-quarter financials, the CEO said Tasnee settled all of its hedge contracts which are 68% lower than those of the first quarter.

He added that the financials were boosted by high production and sales despite rise in some costs.

“We are currently undertaking restructure in the company, which will result in strategic business units and support services,” Al-Morished said.

“We will complete 90% of the restructuring process at the end of the current year, which will reflect positively on the company in the future.”

Tasnee incurred net losses of SAR 107.7 million in the second quarter of 2015, against net earnings of SAR 408.3 million a year earlier.

The company will launch the experimental operation of the second oven in the third quarter of 2015. It is completing the construction work of the butanol project which is expected to see trial operation in the same quarter.

Translated by Abdul Maguid Aboshahla