Advanced Petrochemical Co. (2330.SE): Updating numbers post 2Q26 results & call: volumes trough yet netbacks appear resilient; maintain

Research evidence excerpt

Advanced Petrochemical Co. (2330.SE): Updating numbers post 2Q26 results & call: volumes trough yet netbacks appear resilient; maintain

Equity Research

14 July 2026 | 12:42AM GST

Advanced Petrochemical Co. (2330.SE): Updating numbers post 2Q26

results & call: volumes trough yet netbacks appear resilient; maintain

We maintain our Neutral rating on APPC and update our estimates after Faisal AlAzmeh, CFA

+971(4)376-3476 |

management held its 2Q26 management conference call on July 13. faisal.alazmeh@gs.com

Goldman Sachs International

Today’s management discussion was largely focused on: (i) the operational Roman Reshetnev

+971(4)376-3423 |

impact of the propane supply shortage in April–May, (ii) the passthrough of elevated roman.reshetnev@gs.com

freight costs, (iii) inventory build-up, and (iv) the reported volume losses during the

Swarnilee Patraquarter. Management outlined the normalization of logistics from June, the rerouting +1(332)245-7700 |

of exports through alternative markets, and the utilization of accumulated inventory swarnilee.patra@gs.comGoldman Sachs India SPL

to cushion the sales and earnings impact. Additionally, management discussed the

launch of copolymer grades at APOC, the outlook for PP premia and demand, and

the catalyst-replacement benefits expected to lower the operating-cost profile.

We think investors will likely look beyond the trough quarter and focus on the

utilization rate recovery in June as well as the ramp-up of copolymer grades in

Europe, while generally remaining cautious on selling, freight and distribution

expenses. The 2Q print showed a reported net loss on the volume and production

disruptions, although reporting a sequential improvement in the

netback-to-propane spread resulting in an EBITDA margin beat, despite the impact.