Riyadh-Mubasher: Al Rajhi Capital said in a report that Advanced Petrochemical Co. maintained strong performance during the third quarter of 2015, as it posted SAR 234 million in net profit, with 2.3% growth year-on-year, which was above its estimates with a high margin.

The research firm reiterated its “Neutral” recommendation on the stock, setting its fair value at SAR 47.6 per share.

APC Chairman Khalifa Al-Mulhem earlier said  third-quarter profit growth was spurred by rise in production and sold quantities as well as decline in feedstock prices despite the current global conditions.

Al-Mulhem told Mubasher that low product prices were behind the decline in Q3 profits compared with the previous quarter.

He added that his company bolstered its sales in Africa, but has not opened any production lines in the continent over the last period.  

The petrochemical producer is focusing on China, then India and Turkey, Al-Mulhem earlier said, adding that exports may be increased to the African market.

He also revealed that the joint venture between his company and South Korea’s KS Gas made progress in establishing its propylene plant.

The chairman expected trial operation to start this quarter and commercial operation to begin during the first quarter of 2016.