The Annual General Meeting (AGM) of Lordegan Urea Chemical Fertilizer Company was held with the participation of more than 69.5% of shareholders.
During the meeting, Akbar Esmaeili, CEO of Lordegan Petrochemical Company, presented a report highlighting the company’s strong performance in fulfilling its foreign exchange obligations—ranking among the most successful entities across Iran’s petrochemical industry. He noted that 80% of the company’s total income this year has come from exports, compensating for a slight decline in exports during the previous fiscal year and showcasing the company’s critical economic position.
He further thanked shareholders for their continued support and stated that, with the guidance of PGPIC, Lordegan Petrochemical Company has been exempted from the national electricity grid in order to shield production from power cuts. This move is expected to enhance the company’s production capacity, which previously stood at 46%.
Regarding operational expenditures, Esmaeili explained that 42% of the company's costs are allocated to feedstock and additives, while 24% is used for fuel and energy. As such, the company is prioritizing cost-efficiency and technological solutions to manage expenses more effectively.
In line with plans to increase production, the installation of a new compressor is projected to result in a 15% increase in urea output, reaching full capacity by the end of the year.
To improve the company’s financial structure, Esmaeili said efforts are underway to convert foreign-currency debt into local currency through the support of PGPIC and Petrochemical Investment Company (Petrol). Solutions are also being implemented to address outstanding liabilities owed to PGPIC.
In pursuit of cost reduction and sales efficiency, Esmaeili revealed that the company is negotiating urea and ammonia swap agreements with similar petrochemical firms and group affiliates. The most recent deal involved a 30,000-ton barter contract with Pardis Petrochemical.
The CEO outlined operational priorities including:
- Reforming the human resources management system,
- Strengthening technical and managerial teams,
- Reducing feedstock and fuel consumption,
- Constructing a 50-megawatt solar power plant,
- Enhancing operational reliability,
- Restructuring financial liabilities to mitigate FX risks.
He also confirmed that a number of initiatives were already underway to realize these goals.
According to the report by the independent auditor and legal inspector, the company’s financial statements for the fiscal year ending March 20, 2025, were presented fairly and in accordance with accounting standards.