The annual general assembly of Kharg Petrochemical Company for the fiscal year ending March 19, 2026, was held this morning, June 13, in the conference hall of the Shipping Cultural Institute, with 91.57% shareholder attendance. The shareholders agreed to distribute 90% of the assignable profit. Accordingly, a cash dividend of 7,500 rials per share was approved, which, according to the company, will be paid by the end of June.
26% growth in Kharg’s Petrochemical operating income
Dr. Komeil Pourziaei, CEO of Kharg Petrochemical, announced in his report to the assembly: In the fiscal year ending March 19, 2026, the company achieved sales of 21,172 billion tomans, which, compared to the previous fiscal year’s 16,838 billion tomans, represents a 26% increase. The highest sales figures for the company’s products were methanol at 11,402 billion tomans, propane at 3,364 billion tomans, butane at 3,105 billion tomans, sulfur at 1,690 billion tomans, and pentane + at 1,613 billion tomans. In this year, Kharg Petrochemical produced 947,000 tons of product, including 602,000 tons of methanol, 103,000 tons of butane, 97,000 tons of propane, 81,000 tons of sulfur, and 63,000 tons of pentane+, respectively.
Competitive advantages and challenges facing the company
The CEO of Kharg Petrochemical, referring to the company’s position in the country’s petrochemical industry, cited methanol, propane, butane, pentane, and sulfur as the company’s most important products and stated that the company’s registered capital has reached 600 billion tomans.
He listed the most important competitive advantages of Kharg Petrochemical as the strategic location of the complex on Kharg Island, direct access to international open waters, having a dedicated export pier, independence from the national gas pipeline, specialized human resources, desirable product quality, and the presence of an industrial wastewater treatment unit.
The CEO of Kharg Petrochemical also cited fluctuations in feedstock and fuel prices, the necessity of stability in upstream feedstock lines, and the aging of some equipment and machinery as the most significant challenges facing the company.
Factors affecting production last year
According to the report presented at the assembly, stoppages caused by wartime conditions, the overhaul of the sulfur unit, and the decline in the quantity and quality of received feedstock were among the most important factors affecting the company’s production performance last year.
Latest status of damages and company activities
Pourziaei announced that Kharg Petrochemical has faced some damages during recent incidents, but these damages are not such that they would halt the company’s activities. According to him, most of the threats have been in the form of verbal threats and temporary restrictions, and the company hopes that with improved conditions, the groundwork will be laid for the full reopening of halted symbols in the capital market.
Synthetic Ethanol Project; 12% Progress and Financing in Progress
The CEO of Kharg Petrochemical, explaining the latest status of the value chain development project for synthetic ethanol, announced that the estimated investment for this plan is about $300 million.
According to Pourziaei, about $237 million has been spent on this project so far, a significant portion of which is recoverable.
He also stated regarding the project’s financing that negotiations have been held with several banks, and Bank Mellat has been selected as the agent bank. Selling surplus compressors, increasing capital, and using the company’s internal resources are among the options being considered to provide financial resources for this project.
The CEO of Kharg Petrochemical cited issues related to the selection and finalization of the licensor as the main reason for the slow progress of the project and added that the license, PDP, and Basic Engineering contracts have been signed.
Pourziaei stated that one of the reasons for the delay in the technical and engineering studies of the ongoing “synthetic ethanol” project was the prolonged internet outage and the lack of communication with the Chinese licensor.
According to the report presented at the assembly, the physical progress of the synthesis project has reached about 12 percent, and it is predicted that construction operations will begin by the end of this year.
Historic Overhaul of the Sulfur Plant after 57 Years
The CEO of Kharg Petrochemical announced the implementation of the first major overhaul of the sulfur plant in the 57 years of the complex’s operation and described it as one of the most important technical actions of last year.
According to him, this 60-day overhaul not only increased production stability but also paved the way for improved operational performance of the sulfur unit.
$21 Million Revenue from Sulfur Exports
Pourziaei, referring to favorable conditions in the global sulfur market last year, stated that the price of this product at times exceeded $400 per ton.
He added that, simultaneously with the completion of the overhaul and increased production stability, sales of Kharg Petrochemical’s sulfur grew by 141%, generating about $21 million in export revenue for the company.
Production and Sales Performance This Year
The CEO of Kharg Petrochemical announced that the company’s production in the first quarter of the year was carried out according to plan.
Also, part of the unrealized sales from March was recorded in April, and the sales performance for the first quarter of the year is considered favorable.
According to Pourziaei, performance reports published in the coming months will also reflect the company’s positive operational results.
Insurance Coverage Status
The CEO of Kharg Petrochemical, in response to shareholders’ questions about insurance coverage, emphasized that if the insurance coverage was insufficient, this issue would have been reflected by the independent auditor in the company’s audit report.
Contract Guarantees and Prepayments
The CEO of Kharg Petrochemical announced that for prepayments made to suppliers, a bank guarantee equivalent to 150% of the paid amount is obtained.
In addition to the bank guarantee, a check is also taken from the contract parties, and in foreign currency contracts, the guarantees are updated every six months.
Details of Seawater Tariff
According to Pourziaei, based on the company’s announcement, the seawater rate is determined by the Economic Council, and the latest notified rate relates to December of last year.
The cooling water rate was announced to be about 660 rials, and the water used for desalination about 3,300 rials per cubic meter. Also, the company’s average payment to Bushehr Regional Water is about 600 million tomans every quarter.
Plan for Selling Surplus Compressors
The CEO of Kharg Petrochemical announced that correspondence has been made with Persian Gulf Petrochemical ndustries Company (PGPIC), TAPICO, and other petrochemical companies for selling surplus compressors.
However, so far no buyer has expressed readiness for these equipments, and the company intends to hold an auction process for selling these equipments in the current year.
