‎Chemanol logs lifetime high profit in H1 2022: Chairman

‎Chemanol logs lifetime high profit in H1 2022: Chairman

Methanol Chemicals Co. (Chemanol) recorded exceptional earnings in H1 2022 — the highest since its inception, Chairman Ali Al-Turki told Argaam.

He expects the chemical producer to maintain its balanced performance in 2022 despite the foreseen volatile global conditions.

Al-Turki confirmed that the company has not received any official notification regarding the in-crease in feedstock prices, indicating that the ratio of feedstock (gas) cost to the company’s final total cost is deemed low.

The feedstock cost amounted to about 7% of the firm’s total cost in H1 2022, the Chairman said, indicating that Chemanol’s feedstock production costs will amount to nearly SAR 64 million annu-ally when the company reaches its maximum production capacity.

Feedstock production costs currently represent around 5% of Chemanol’s total sales. When increas-ing the feedstock price by 25%, production value will rise by SAR 16 million only.

The Tadawul-listed firm is currently working close to its maximum production capacity, and is studying new projects for the production of specialized methanol derivatives.

The Chairman also highlighted forecasts for product prices, how the new loans will help reduce finance charges, as well as project developments.

Here’s the full interview with Al-Turki:

Q: What is your comment on Q2 2022 results? What are also your expectations for the