2Q26 First Take: Miss on Lower Volumes / Higher Costs

Research evidence excerpt

2Q26 First Take: Miss on Lower Volumes / Higher Costs

Update

July 12, 2026 10:48 PM GMT

Morgan Stanley & Co. International plc+MAdvanced Petrochemicals | Europe Ricardo Rezende, CFA

Equity Analyst

2Q26 First Take: Miss on Lower Ricardo.Rezende@morganstanley.comSylvia C Richards +44 20 7677-9886

Research Associate

Sylvia.Richards@morganstanley.com +44 20 7677-3354

Volumes / Higher Costs Giulia Faro

Giulia.Faro@morganstanley.com +44 20 7425-7581

Reaction to earnings

Advanced Petrochemicals (2330.SE, APPC AB)

Unchanged Meaningful shortfall Largely unchanged

EEMEA - Chemicals | Saudi Arabia

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Underweight

Source: Company data, Morgan Stanley Research Industry View No Rating

Price target SAR 23.50

Shr price, close (Jul 12, 2026) SAR 22.78

Key Takeaways 52-WeekMkt cap, currRange(mn) SAR 38.64-SAR 21.555,888

Net debt (12/26e) (mn)* SAR 9,226

APPC delivered a challenged 2Q26; shares gained -0.9%, outperforming TASI by EV, curr (mn)* SAR 15,404

+0.8pp despite material revenue and EBIT misses.

* = GAAP or approximated based on GAAP

Revenue of SAR827m missed MSe/Bloomberg by -11%/-16%, as propane

shortages and early maintenance cut production -57% q/q and sales -46%.

Netbacks rose +42% q/q, but propane/propylene costs surged +46%/+15%,

pushing EBIT to SAR17m, -89%/-76% below forecasts.

APPC posted a SAR5m net loss, +89% better than consensus; propane supply

normalized in June and all plants returned to full capacity.

Q3 spreads should stay near Q2 as, despite lower product prices, feedstock and

logistics costs also softened.

Bottom-line: mixed. APPC reported a challenged set of 2Q26 results Sunday BMO,

with the stock closing +0.9% on the Tadawul (+0.8pp above the TASI).