Net Profit Increased 4.5 Times

Based on the published financial results, Shazand Petrochemical’s net profit for fiscal year 2025 reached IRR 30,181,111 million (approximately IRR 30.2 trillion), representing a 4.5-fold increase compared with the previous fiscal year. This level of profitability is among the company's strongest performances in recent years.

It is particularly noteworthy that this achievement was realized despite substantial inflationary pressures during 2025. For example, the company's average natural gas cost increased by 140% compared with the previous year.

Operating Profit Surged by 467%; Net Profit Increased by 345%

The report shows that operating profit increased from IRR 4,967,708 million in 2024 to IRR 28,173,655 million in 2025, reflecting an impressive 467% growth.

Net profit also increased by 345%, rising from IRR 6,782,449 million to IRR 30,181,111 million.

Meanwhile, operating revenues grew by 22%, reaching IRR 488,573,678 million.

Production Continued Despite War and Major Overhaul

During fiscal year 2025, Iran's petrochemical industry was affected by two periods of military conflict, and Shazand Petrochemical was no exception.

Nevertheless, thanks to the commitment and coordinated efforts of the company's management, employees, and workforce, all production units and utility facilities remained operational throughout the year.

Despite:

• a 35-day major overhaul across the production complex,
• temporary operational interruptions caused by the two military conflicts due to civil defense precautions,
• and the six-month suspension of Hydrocarbon A80 exports to Afghanistan,

the company successfully produced more than 1.6 million tons of products during the year.

In addition, despite logistics constraints resulting from the conflicts, total product sales reached 718,934 tons.

The extensive maintenance program, which was carried out after several years and coincided with the 12-day conflict period, had only a limited impact on the company's overall performance.

The suspension of Hydrocarbon A80 exports to Afghanistan—an important export product contributing significantly to both foreign currency earnings and profitability—continued for nearly six months following the implementation of new technical standards and regulations by the Afghan government.

Shazand Achieves 265% Growth in Net Profit Margin and 375% Growth in Operating Profit Margin

Shazand Petrochemical's net profit margin increased from 1.7% in 2024 to 6.2% in 2025, representing 265% growth.

Similarly, the company's operating profit margin rose from 1.2% to 5.7%, reflecting an impressive 375% increase.

Purchase Prices Increased by 40%

As a liquid-feedstock petrochemical producer, Shazand Petrochemical sources its feedstock from domestic refineries, domestic mini-refineries, and international suppliers.

The average purchase price of feedstock increased from IRR 388 million per ton in April 2025 to IRR 730 million per ton by March 2026.

This increase was primarily driven by the elimination of the preferential exchange rate and the implementation of a unified exchange rate policy.

Cost Structure of Production

Direct raw materials remained the largest component of production costs, accounting for approximately 74% of total production costs during the year.

Manufacturing overhead represented an additional 24% of total production costs.

The company's strong financial performance reflects strategic planning by the Board of Directors and management, together with the dedication of its employees and workforce.

Among the most significant initiatives implemented during 2025 were:

1. Completion of an extensive major overhaul program, improving production efficiency and reducing feedstock losses.
2. Optimization of production costs through feedstock diversification, including procurement from domestic mini-refineries and imports at prices below domestic naphtha rates.
3. Continuous efforts to reform the feedstock pricing mechanism.
4. Significant improvement in operating cash flows through settlement of bank facilities, payment of shareholder dividend liabilities, and updating payables to feedstock suppliers.
5. Planning for higher value-added products, including replacing Hydrocarbon A80 with Hydrocarbon A92 for export to Afghanistan.
6. Launch and groundbreaking of five major strategic projects:
   • Design, fabrication, and installation of the fifth reactor in the Ethoxylate Unit.
   • Design, fabrication, and installation of a new spherical storage tank in the Ethylene Oxide Unit.
   • Groundbreaking for the wastewater transfer project from Mohajeran City to the Shazand Petrochemical Complex.
   • Commissioning of the hydrogen transmission pipeline from Imam Khomeini Refinery (Shazand) to Shazand Petrochemical.
   • Groundbreaking of the Olefin Unit excess fuel gas recovery project aimed at strengthening the production chain while improving energy efficiency and reducing fuel consumption.

7. Continued implementation of strict cost-management policies and elimination of non-essential purchases.

8. Disposal of surplus and non-productive assets.

9. Improvement of the company's Price-to-Earnings (P/E) ratio, decreasing from 15.8 to 6.4 by the end of fiscal year 2025.

Looking ahead to fiscal year 2026, Shazand Petrochemical remains committed to enhancing profitability, maintaining stable production, expanding product sales, and meeting the needs of both domestic and international markets. The company is confident that, through the continued dedication of its management, employees, and workforce, together with the support of the relevant governmental and regulatory authorities, these objectives will be successfully achieved.