PGPIC Announces $1.6 Billion Investment in 2024

PGPIC Announces $1.6 Billion Investment in 2024
(Sunday, September 15, 2024) 18:26

TEHRAN (NIPNA) - Persian Gulf Petrochemical Industries Company (PGPIC) plans to invest over 50 trillion tomans ($1.6 billion) in 2024, following a record investment of 72 trillion tomans ($2.2 billion) in 2023. CEO Ali Askari emphasized the crucial role of investment in the group's continued growth and success.

 

 

During a quarterly meeting of PGPIC’s senior managers, Askari highlighted the company’s significant achievements in production, sales, and profitability. He stressed the importance of human capital and outlined challenges facing the petrochemical industry on a global scale, while reaffirming the company's commitment to investing in both upstream and downstream projects in line with its five-year strategic plan.

PGPIC aims to improve its global ranking, currently 27th, with a target of breaking into the top 20. Askari reported that the company’s production increased from 20 million tons in 2020 to 24.8 million tons in 2023, with a goal of reaching 28.6 million tons by the end of 2024. As of mid-September, production had already surpassed 12.8 million tons, achieving 96% of the annual target.

Sales growth has been equally robust. The company’s revenues rose from 308 trillion tomans ($9.6 billion) in 2021 to 517 trillion tomans ($16.1 billion) in 2023. This year, PGPIC aims to reach 509 trillion tomans in sales, having already achieved 102% of the five-month target.

Askari also noted a sharp rise in profitability. In June 2020, the company's parent profit was 38.7 trillion tomans, which grew to 68.4 trillion tomans in 2023. The company expects to reach 77 trillion tomans by the next shareholders' meeting. Consolidated profits have also soared from 60.7 trillion tomans in 2020 to an anticipated 115 trillion tomans this year.

The CEO outlined several key development projects, including the startup of the Hoveyzeh gas refinery and the Gachsaran petrochemical plant in 2023, and the launch of phase one of the Hengam petrochemical complex, the Bouali Sina paraxylene unit, and Bandar Imam’s major wastewater treatment plant in early 2024. The company plans to bring three more projects online this year: Apadana Petrochemical, Sadaf Petrochemical, and Arghavan Gostar Ilam.

Looking ahead, Askari revealed that PGPIC has selected two Chinese partners to help attract foreign investment and execute its development plan. He also emphasized the company’s commitment to supporting domestic manufacturers and knowledge-based companies, noting the signing of 410 contracts with 332 local firms and investments worth 18 trillion tomans in Iranian producers.

In a bid to ensure sustainable feedstock supply, PGPIC is collaborating with the Iranian Ministry of Oil on projects to process oil at wellheads, which could boost Iran’s oil output by up to 400,000 barrels per day.

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