Shazand Petrochemical Company (Arak) recorded significant performance in the Spring of 2025. According to published financial reports, the company managed to record an operating income of 9.940 billion tomans, a growth of 16 percent compared to the same period last year.
Gross profit increased significantly by 41% to 676 billion tomans and operating profit increased by 55% to 259 billion tomans. The company’s net profit also jumped by 52% to 348 billion tomans, indicating the success of sales and cost control strategies.
It is noteworthy that these achievements were recorded while the company did not sell gasoline for about two months during this period and was engaged in a major overhaul of its units for about 20 days, which doubles the importance of these positive results.
Among the important measures taken by the company in the recent period was to diversify the feedstock of the olefin unit. Given the crisis in the supply of liquid feedstock (naphtha) and its price fluctuations, Shazand Petrochemical intends to allocate 20 percent of its resources to gas sources such as propane, butane and C4. This strategic decision, along with correcting the feedstock rate and increasing the productivity of the production units, will significantly contribute to improving the company’s operational performance.
In this regard, the production of A92 quality gasoline has also replaced the old A80 product, which has provided a new opportunity for exports after its import ban by Afghanistan. The prototypes of A92 have been approved by the Afghan side and its exports will begin soon. The price difference of about $100 of this product compared to A80 can also significantly increase the company’s revenue generation.
Other notable actions included the successful implementation of a major overhaul with over 2 million man-hours of activity in difficult political and regional conditions, which played a significant role in equipment readiness and production sustainability. Also, with the formation of specialized committees in the financial and operational areas, the process of controlling costs and preventing unnecessary purchases has been put on the agenda, which is expected to lead to a 5% increase in profit margins.
At the recent general meeting, Shazand Petrochemical Company management introduced three key axes for the company’s continued growth path:
1.Reforming feedstock prices and securing cheaper resources
2.Diversifying the feedstock portfolio and using gas feeds
3.Focusing on producing high value-added products such as A92.
Given this strategic approach and impressive financial achievements, a bright outlook is envisioned for Shazand Petrochemical in the rest of this year; a horizon that will not only strengthen the company’s position in the country’s petrochemical industry, but will also bring significant added value to shareholders.
