Petrofarhang Orders Domestic Production of 30 Key Process Equipment to Cut Forex Outflows

Petrofarhang Orders Domestic Production of 30 Key Process Equipment to Cut Forex Outflows
(Monday, March 10, 2025) 15:41

TEHRAN (NIPNA) – Iran’s Petrofarhang Holding has placed an order for the domestic production of 30 specialized process equipment for the first time, preventing the outflow of tens of millions of euros from the country, its CEO said on Monday.

Speaking at the company’s annual general meeting, Joavad Zarehpour, CEO of Petrofarhang, highlighted the holding’s record-breaking financial performance despite challenges such as gas supply shortages.

"In the past fiscal year, we achieved the highest production, exports, and profitability in Petrofarhang’s history, with a 41% rise in production, a 30% increase in exports, and a staggering 410% growth in operating profit," Zarehpour said. He added that net profit surged by 300%, marking the company’s transition from loss-making to profitability.

The CEO emphasized that despite over 180 days of gas supply disruptions affecting key subsidiaries Kimia Pars Middle East and Sabalan Petrochemical, the company met and exceeded its budget targets.

Looking ahead, Petrofarhang plans to boost methanol production capacity to 6.6 million tons annually by completing projects such as Sabalan 2 (Dena) and Siraf Energy Petrochemical. The holding also aims to develop three downstream projects to enhance value-added production.

Zarehpour said the company had secured approvals for major downstream ventures, including acetic acid, vinyl acetate monomer, and synthetic ethanol at Lavon Chemical; olefin and polypropylene production at Mahtab Parsian; and polyacetal at Arya Petrochemical.

Additionally, Petrofarhang is expanding into the upstream oil and gas sector through field developments at Gardan and Pazan, aiming to address national energy imbalances. The holding is also investing in renewable energy, planning to generate 400 megawatts of clean power over four years.

Financially, the company raised over 50 trillion rials ($1 billion) in funding through various financial instruments, a record for the holding.

Zarehpour stressed the importance of supporting domestic manufacturers, citing the recent order for 30 specialized process equipment as a key step in reducing reliance on foreign suppliers.

In another milestone, the company centralized its methanol trade under Seku International Trading, cutting shipping costs from $61 to $55 per ton and eliminating high-cost contracts.

Petrofarhang also announced the long-delayed resumption of the Sepehr Hotel project, with financing secured through pre-sales and contractor mobilization.

At the conclusion of the meeting, the company’s financial statements for the fiscal year ending September 2024 were approved, and Donya-e-Eqtesad was designated as the official newspaper of Petrofarhang.


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