Complementary Report of Introducing Jam Petrochemical Complex Capacities in Capital Market Extent

Complementary Report of Introducing Jam Petrochemical Complex Capacities in Capital Market Extent
There was held introducing meeting of Jam Petrochemical Complex, as another newcomers in stock exchange. The complex will come in capital market in few future days and provide itself for investors in this area.

According to Jam Petrochemical Complex public relations, in the beginning of the meeting, Sepahdar Ansari Nik, Jam Petrochemical Complex CEO, said: for the present time, Jam Petrochemical Complex production capacity is 1,800,000 tons. Meanwhile there has been become certain 85% of the complex production program during 2102 and 2013. The complex capacity will be 2,000,000 tons until 2014, according to the considered programs; as which the petrochemical complex has considered to produce 600,000 tons polymeric products as well as 1,300,00 tons ethylene annually in its work program.

About composition of selling the complex products as local and export, Sepahdar Ansari Nik said: about 25% of Jam Petrochemical Complex polymeric products will provide the local market needs and its remains are exported to Russia, Turkey and Asian countries such as China, India, Philippine and South Korea. It is necessary to mention that export volume to China is more than other countries. There is exported 100% Butadiene in chemical products section. The exported ethylene and butane-1 are 10% and 25% total produced tonnage respectively.  

He continued: according to performance in the previous year, vale of exporting Jam Petrochemical Complex was about $520 million, which it can be increased until 20% during one or two future years, provided that South Pars refineries supply the complex feed and increasing capacity of Jam Petrochemical Complex become certain.

By considering to sale the complex products locally, he said: Jam Petrochemical Complex could experience 80% growth for selling its products locally during 2012 in comparison with 2011; as which the complex local sale was Rials 1,100,000,000,000 in 2011, which this amount was more than Rials 20,000,000,000,000. It is necessary to mention that the growth was not due to increase rate of selling products, but increasing local supply of the complex products as 50%.

By pointing out the complex profitability and the considered evaluations for 2013, Ansari Nik said: Jam Petrochemical Complex could verify Rials 2,190 for every stock in 2012 that there was divided Rials 2,000 in shareholders’ general assembly as cash profit. Whereas, there has been predicted more than Rials 3,000 for every stock in 2013.

About Jam Petrochemical Complex developmental project, as one of the complex strengths, he said: the complex is executing many projects, which their most important are project of producing ABS polymer, project of producing alpha olefin and participating in investment project of producing propylene through hydrogenation and propane and polypropylene by Parsian Bank investment.

To describe the mentioned projects, he declared: in fact, project of producing ABS polymer is project that can provide value added about $300-$600 for each ton of the complex productions averagely by changing the produced butane to ABS polymer and artificial rubber.

About other projects details of Jam Petrochemical Complex, Ansari Nik said: project of investment participation to produce propylene and polypropylene is another project of Jam Petrochemical Complex, which there has been carried out necessary agreements with Parsian Investment Co. to purchase 51% of the project managerial stocks in the instant year. Executing the mentioned project provide an opportunity for the complex to compete with large producer companies in the Middle East and Asia to produce propylene and polypropylene

Jam Petrochemical Complex CEO about the consumed feed for the complex and its rate, said: Jam Petrochemical Complex consumed feed include 55% liquid feed and its remaining is gas feed.

He hoped that Oil Ministry review its informed rate for gas feed with price $240 for each ton, by considering to available conditions.

Ansari Nik added: the important matter about price of the liquid consumed feed by petrochemical companies such as Jam Petrochemical Complex is possibility of reducing its price to equalize rate of liquid and gas feeds, as proposed by vice-president. It is appeared that there is possible to execute the program, by considering to policies of new government, of course, if it is approved by the council of ministers. If the program is executed, Jam Petrochemical Complex profitability will be increased considerably because of decreasing large amount of the finished price.

Jam Petrochemical Complex CEO hoped that the region petrochemical units especially Jam Petrochemical Complex will be able to get capacity of the complex olefin unit more than 90% nominal at the remaining of the year by solving problems to supply ethane from Pars Petrochemical as well as running phases 15 and 16 of South Pars to supply ethane.

Ansari Nik said too: in direction to supply the consumed feed on time, Jam Petrochemical Complex is looking to get more shares from the produced ethane in South Pars phases to ensure its required feed supply process.

Ansari Nik said some matters about concluding rent contract of a ship to transport ethylene for three years: there have been problems to transport the complex products previously because of international boycotts, therefore, this action can help Jam Petrochemical Complex to solve its problems.

Finally, about Jam Petrochemical Complex future, he said: at the present time, Jam Petrochemical Complex is considered as fifth local petrochemical company after companies such as Imam Port, Zagros and Pardis petrochemical companies. We hope that the complex will be able to loctae top 10 large companies to produce olefin and polyolefin in the worldwide, according to the complex long term programs.

Sep 7, 2013 09:17
Jam Petrochemical Complex public relations |
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