Javad Zarepour, speaking at the annual general meeting of the holding on Sunday, stated that despite numerous challenges in the production processes of subsidiary companies, fiscal year 1403 was recorded as the most outstanding year in Petrofarhang's history for production, exports, and profitability. The goal was to create sustainable wealth for the Cultural Reserve Fund.

Zarepour presented statistics showing a 41% increase in production, a 30% rise in exports, a 410% surge in operating profit, and a 58% growth in operating income compared to the previous fiscal year. These figures indicate fundamental changes in the holding's development trajectory. With a 300% increase in net profit, Petrofarhang transitioned from loss-making to profitability.

The CEO attributed the achievement of over 100% of the budget to the company's program-oriented approach. He noted that Petrofarhang's targeted and planned efforts led to exceeding the set goals, with a 225% realization of the net profit target and a 140% achievement in operating profit. This allowed the holding to settle all its debts to the Cultural Reserve Fund.

Expanding production capacity, future projects

Zarepour highlighted ongoing projects, including the acceleration of the Sabalan 2 (Dena) and Siraf Energy Petrochemical projects. These initiatives will add an annual production capacity of 3.3 million tons of methanol, bringing Petrofarhang's total production capacity to 6.6 million tons and positioning it as one of the world's largest methanol producers.

He added that three downstream methanol projects are also underway, aiming to produce higher value-added products within the next three years and diversify Petrofarhang's production portfolio.

The CEO also outlined the company's plans in downstream industries, noting that after years of efforts, Petrofarhang secured three preliminary approvals for producing acetic acid, vinyl acetate monomer, and synthetic ethanol at Lavand Chemical Company; olefins from methanol, polypropylene, acrylic acid, and superabsorbents at Mehrabad Parsian Company; and polyacetal at Aria Petrochemical. These strategic investments are aimed at creating sustainable wealth from cultural investments.

Entering upstream, clean energy sectors

Zarepour detailed Petrofarhang's entry into the upstream oil and gas sectors, stating that as the first oil and gas holding in the country, the company has invested in the Gardan and Pazan fields and is finalizing partnership contracts in this area. These moves will enable the holding to operate across upstream, midstream, and downstream sectors of the petrochemical industry.

He also mentioned the delivery of over 35 megawatts of electricity to the national grid through two power plants built by Mofanna Company, the start of construction for three solar power plants, and a target to produce 400 megawatts of clean energy within the next four years as part of efforts to address the country's energy imbalance.

Financing challenges, support policies

Zarepour identified financing as one of the holding's major historical challenges, revealing that in fiscal year 1403, over 5 trillion tomans were raised through forward-selling bonds, benefit bonds, financing, and other sources to complete company projects. This level of financing was unprecedented in previous years.

He also highlighted supportive policies for domestic producers, noting that 30 specialized process equipment units were ordered for the first time within Petrofarhang's subsidiaries, preventing significant foreign currency outflows.

Transparency, optimization of sales processes

The CEO emphasized the importance of transparency in the sales processes of methanol produced by subsidiaries, stating that for the first time, the commercialization and sales sector was centralized at Soko International Trade Company. This move aimed to protect shareholders' investments, enhance oversight, reduce commercial costs, and improve foreign trade. As a result, the maritime shipping cost per ton of methanol decreased from $61 to $55, and all costly ship contracts were canceled.

Zarepour also announced the resumption of the 9-story Sepehr Hotel project, which had been stalled for eight years. A contract was signed with a contractor to complete the project, and for the first time, approval was granted to issue benefit bonds worth 2 trillion rials by the Sharia Committee of the Stock Exchange, marking a significant step in reducing the holding's project risks.

He concluded by stating that with 3 trillion rials in financing secured through pre-sales of services and partnerships with Sabalan and Kimia companies, the project's execution has begun and is currently underway.