Lordegan Petchem Plant to Boost Urea Output by 15% by Year-End

Lordegan Petchem Plant to Boost Urea Output by 15% by Year-End
(Monday, August 4, 2025) 16:00

TEHRAN (NIPNA) — Iran’s Lordegan Petrochemical Co. plans to increase its urea production by 15% by the end of the current Iranian calendar year (ending March 2026), as part of a broader effort to enhance operational efficiency and stabilize export revenues, the company’s managing director said on Monday.


Speaking at the company’s annual general meeting, Akbar Esmaeili outlined a strategic roadmap that includes cost optimization through technology adoption, expansion of export markets, and financial restructuring.

“Eighty percent of this year’s total revenues have been generated through exports, a sharp recovery from the previous fiscal year’s slight decline in foreign sales,” Esmaeili said, adding that Lordegan Petrochemical remains one of the top performers in fulfilling forex repatriation obligations across Iran’s petrochemical industry.

The AGM, held with over 69.5% shareholder attendance, also approved the company’s financial statements for the fiscal year ending March 2025. According to the independent auditor’s report, Lordegan’s financial position and cash flows were presented fairly in accordance with Iranian accounting standards.

Esmaeili voiced concern over delayed payments from the Ministry of Agriculture for urea supplied to support national food security efforts, saying that liquidity challenges are being addressed through internal measures and coordination with holding companies.

The managing director credited Persian Gulf Petrochemical Industries Co. (PGPIC), Lordegan’s parent company, for helping the plant circumvent electricity blackouts by excluding it from the national grid's planned power cuts. “This move has allowed us to improve our utilization rate, previously recorded at 46%,” he noted.

With the installation of a new compressor, the company expects to reach full production capacity by year-end. Additionally, Esmaeili stressed the need to restructure the firm’s debt through foreign exchange-to-rial conversions with the assistance of PGPIC and its financial arms.

“Energy and feedstock costs make up 66% of our total expenditure. Optimizing these segments through technology and best practices is a top priority,” he added.

Lordegan is also exploring swap arrangements with peer companies within the PGPIC network. One such deal, involving 30,000 tons of urea, has already been executed with Pardis Petrochemical.

In line with Iran’s Seventh Development Plan, which encourages gas recovery from flaring in oil-rich southern regions, Esmaeili said the company is pursuing a plan—pending approval by the Petroleum Ministry—to utilize its recovered gases during the winter.

When asked about share price growth, Esmaeili cited stable production, rapid export sales, and controlled forex liabilities as key drivers. He concluded by outlining several ongoing initiatives, including a 50-megawatt solar power project, human resources restructuring, and optimization of technical processes and hardware to increase profitability and sustainability.

 


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