(
bloomberg) -- Advanced Petrochemicals Co. (APPC) dropped to the lowest level in almost two months after the Saudi manufacturer of polypropylene products said third-quarter estimated profit retreated 26 % on lower prices.
The shares fell as much as 1.2 % to 25.2 riyals before closing at 25.4 riyals, the lowest level since Aug. 11. The kingdom’s benchmark Tadawul All Share Index slipped 0.4 %, the most since Sept. 29, to 6,863.30.
"As polypropylene prices, on average, continue to remain soft in 2012, we are revising downwards our 2012 and 2013 net income estimates to 321 million riyals (USD86 million) and 494 million riyals respectively," Riyad Capital analysts including Muhammad Faisal Potrik said in an e-mailed note today. Potrik cut the share-price estimate 3.1 % to 31 riyals.
Advanced Petrochemicals’ net income for the three months ended Sept. 30 declined to 100 million riyals from 136 million riyals in the year-earlier period, the company said yesterday. Full-year profit may drop 41 % to 304 million riyals this year.
Advanced Petrochemical Company (ADVANCED), a Saudi joint stock venture, commercial production was started in the first quarter of 2008. The facility produces 450 thousands tones per year of polypropylene. PP enjoys high international demand as it can be processed by virtually all thermoplastic-processing methods.
MRC