Despite nearly 45 days of production stoppage and operating restrictions caused by wartime conditions, Kharg Petrochemical Company reported net profit of 5.87 trillion tomans for Spring 2026 —17% higher than its net profit for the full year 2025. The company’s net profit margin reached 41.4%.
A review of the company’s performance during the management of Komeil Pourziaei shows that Kharg Petrochemical achieved a significant pricing advantage in LPG sales. Its average selling price per tonne of LPG was $38 higher than the average price recorded by seven other suppliers.
This pricing advantage, combined with the conversion of operating cash flow from an outflow in the comparable period to a 6.6 trillion-toman inflow, strengthened the quality of the company’s earnings.
Net Profit Rises More Than Twelvefold
Kharg Petrochemical’s net profit increased from 485 billion tomans in the comparable period last year to 5.87 trillion tomans in Spring 2026, representing growth of more than twelvefold.
The significance of this performance becomes clearer when compared with the company’s full-year 2025 results. Kharg Petrochemical generated approximately 5 trillion tomans in net profit during 2025, meaning its Spring 2026 was about 17% higher than its entire previous-year profit.
The company’s net profit margin also increased sharply, from 9.6% in the comparable period to 41.4%. Earnings per share reached 9,781 rials.
LPG Sales at a $38 Premium
One of the key features of Kharg Petrochemical’s performance under Pourziaei’s management period was the pricing of propane and butane, the company’s main LPG products.
On average, Kharg Petrochemical sold each tonne of LPG for $38 more than the prices achieved by seven other suppliers. The premium was achieved despite production stoppages, feedstock constraints and wartime operating conditions.
During the period, the company sold 33,556 tonnes of butane and 21,012 tonnes of propane. Combined income from the two products reached approximately 5.1 trillion tomans, accounting for nearly 36% of total operating income.
The rial selling price of butane more than tripled year on year, while propane prices increased by approximately 169%, helping offset the decline in propane sales volume.
Income Up 179% Despite Lower Sales Volume
Kharg Petrochemical’s operating income increased from 5.1 trillion tomans in the comparable period last year to 14.2 trillion tomans, representing 179% growth.
The increase came despite a 23% decline in sales volume, from 234,819 tonnes to 181,200 tonnes. The weighted average income per tonne rose from 21.6 million tomans to 78.2 million tomans, reflecting higher selling prices and a shift in the company’s product mix.
Sulfur and pentane-plus also made a significant contribution. While neither product generated sales in the comparable period last year, their combined income reached 5.4 trillion tomans, accounting for 38% of total operating income.
All of Kharg Petrochemical’s operating income during the period came from exports, with no domestic sales recorded.
Gross Profit Margin Reaches 62%
The cost of operating income increased 38% to 5.3 trillion tomans, significantly below the 179% growth in income. As a result, gross profit increased from 1.2 trillion tomans to 8.84 trillion tomans.
The gross profit margin rose from 23.8% in the comparable period to 62.4%. Operating profit also increased nearly sixteenfold to 7.35 trillion tomans, exceeding the company’s total operating profit for full-year 2025 by 14%.
The figures indicate that the sharp increase in quarterly profit was not driven solely by higher income. The improved product mix, export pricing and control over operating costs also played an important role.
Operating Cash Flow Turns Positive
The quality of Kharg Petrochemical’s earnings is also reflected in its cash-flow statement. Operating cash flow, which stood at negative 178 billion tomans in the comparable period last year, turned positive at 6.6 trillion tomans.
Operating cash flow was approximately 13% higher than net profit for the period, indicating that the reported earnings were accompanied by substantial cash generation rather than relying solely on accounting recognition of income.
The company’s cash balance also increased 63% to 6.9 trillion tomans. Meanwhile, outstanding financial facilities declined from 4.9 trillion tomans at the beginning of the period to 2.63 trillion tomans, a decrease of about 46%.
Sales Maintained Despite 45-Day Shutdown
Kharg Petrochemical’s units were completely shut down from March 6, 2026, because of wartime conditions and the national emergency, and returned to production on April 21, 2026. As a result, the company spent nearly half of the period without production.
Lower feedstock availability from the Abuzar oil platform, together with a deterioration in feedstock quality, also constrained production. Nevertheless, Kharg Petrochemical produced 150,772 tonnes during the period and used opening inventories to lift sales to 181,200 tonnes.
With net profit exceeding the company’s full-year 2025 result, a 41.4% net profit margin, operating cash flow of 6.6 trillion tomans and LPG sales at a premium to other suppliers, Kharg Petrochemical’s three-month performance stands out as a significant result in Iran’s petrochemical industry.
