Does the effect of sanctions on the performance of petrochemical companies/stock market decrease? – Tejarat News

According to Tejarat News, according to the information of Thursday, March 2nd (March 11th) of the US Treasury Department, the large petrochemical plants of Bushehr and Shiraz have been included in the list of new sanctions of the United States.

Experts believe that the US Department of Treasury has targeted Iran’s exports by identifying companies that have been involved in evading Iran’s oil and petrochemical sanctions in recent years. Based on the recent sanctions and how to circumvent the sanctions, it is expected that Iran’s petrochemicals will face a decrease in exports, which in the long run can have a negative impact on the stock market and make these industries decline in the stock market.

Based on this, active petrochemical industries on the stock market face losses in the long term. Experts believe that this loss of the petrochemical industry is certain in the long run. But if the nuclear negotiations reach a positive result, with the reduction of sanctions, the stock market and various industries will experience real growth and growth in the medium term.

Slowing profitability

Fardin Aghabozouri, a capital market expert, told Tejarat News about the petrochemicals embargo: “Each restriction has its negative effects on the amount of production and sales and development plans, and in a way it slows down this process.”

He continued: “These sanctions will increase all costs, especially transportation and insurance costs (both land costs and sea costs) and somehow we will have at least 20% additional costs. Finally, I can say that fortunately, due to the long history of the embargo, our industries and companies have adapted to these conditions to some extent.”

This capital market expert stated: “The effects of these sanctions can be seen in the income of companies; Although the income from sales is shown in the financial statements as an increase, but when we look at the amount of sales, the trend is almost decreasing, or the period of collection of receivables is delayed more (especially export-oriented companies).

The solution to get out of the trap of sanctions

Aghabouzuri explained: “The sales rate shows a major part of the slope of production and sales to be somewhat neutral. That group of products that have the ability to be stored or stored will be less damaged because they will be sold at the right time and price by using tanks on the sea or ship.

Finally, he explained: “The more important point is the supply of raw materials or machinery for the development plans of companies and industries due to sanctions. By selling the products at a lower rate, the customer is more willing to help the process of moving the products.”

It seems that according to the sanctions and the economic situation, petrochemical companies will not suffer much loss with this new sanction.