Persian Gulf Petrochemical Industries Company

Stock performance

History

Persian Gulf Petrochemical Industries Company was set up in the 2000s as a holding company to group many of Iran's state petrochemical plants ahead of their partial privatization, and it was listed on the Tehran Stock Exchange. In 2019 the US Treasury sanctioned it as Iran's largest petrochemical holding group, citing its financial support for the Revolutionary Guards' business network.

Business model

PGPIC owns stakes in a large network of petrochemical plants, mostly in the Bandar Imam and Assaluyeh special economic zones on the Gulf coast, producing urea, ammonia, methanol, polymers, and other products from Iran's natural gas and gas liquids. A large share of its output is exported, largely to China and other Asian markets, often at discounts because of sanctions.

Market position

PGPIC is the largest petrochemical group in Iran and one of the most valuable companies on the Tehran Stock Exchange; Iran is one of the world's largest exporters of methanol and urea.

Country impact

Petrochemicals are Iran's largest category of non-oil exports, so PGPIC is a key source of the hard currency the economy needs under oil sanctions. The company's results swing with global fertilizer and methanol prices, with the exchange rate, and with how strictly sanctions on Iranian petrochemical sales are enforced.