The general annual assembly of Shazand Petrochemical for the fiscal year 2024-2025 was held on July 16. Abbas Karimi, CEO of Shazand Petrochemical said that Shazand Petrochemical’s operating income in the fiscal year 2024 exceeded 40 thousand billion tomans, which was an increase of 38% compared to the previous fiscal year. The company also recorded a net profit of 677 billion tomans.
Karimi added that the company’s production volume in 2024 reached 1 million 855 thousand tons, of which 893 thousand tons were sold. The rate of overhead costs and cost price reached 39.5 thousand billion tomans. This registers an increase of 47 percent. Among them, 78 percent of overhead costs are related to feed. The average feed purchase in 2023 was 19 million per ton, and in 2024 it reached 30 million tomans which registers an increase of 55%.
The CEO of Shazand Petrochemical Company stated that the company reduced the feedstock risk by providing feed from all suppliers, and Shazand Refining has provided the highest feed of the complex with 23 percent.
Karimi pointed out that the drop in profit margin was due to a sharp increase in production costs. He said the company succeeded in pursuing the reform of feed pricing and obtaining discounts. In addition, with the implementation of the company’s overhaul after 11 years, the company established the foundations for Sharak’s sustainable production and profitability, and the company’s profit margin will increase by an average of 5 percent annually.
The CEO of Shazand Petrochemical added that in this year’s extraordinary general assembly, the company’s registered capital increased from 806 billion tomans to 1700 billion tomans from retained earnings, an increase of 111 percent.
In the end, a dividend of 300 rials per share based on the company’s new capital increase was approved by the board of directors and shareholders of the Sharak assembly.
