date : 16 September 2020

Iranol, leading in production sale

The Covid-19 pandemic and the social distancing plan since late March 2020 which strongly continued until April 2020 lead to the decrease of using vehicles throughout Iran. This issue affected the reservoirs of Iran's refineries which are the suppliers of feeds for oil producing companies and the oil producing refineries faced limitations in regards to feed supply during the first months of 2020-21. These limitations were obvious for all oil producing companies and was direr for Iranol which used Vacuum Batuum in addition to lube cut

Despite this fact and in consideration of the guidelines of the supreme leader and naming the current year as the year of production jump and also the strategies of the company until 2025, the rising trends of the company has accelerated since March 2020. This is not only a claim but a fact based on official statistics. The official statistics which are already published on Kedal website every month shows that the production of Iranol during the first 5 months of 2020-21 increased at 12% compared to the previous year despite the fact that the production amount for the first 5 months of 2019-20 compared to the same period in 2018-19 decreased at 16%. When addressing this issue it should be noted that the economic conditions during these 2 years were greatly changed and this increase is a great achievement for the company.

This growth and increase is not limited to the production amount but in the volume sale also the total domestic and exportation sale of Iranol in the first 5 months of 2020-21 compared to the previous year increased 19% even though that regarding this matter in the first 5 months of 2019-20 compared to the previous year it experienced 19% decrease. Increased unjust sanctions on Iran's economy proves the great achievement by Iranol.

The rising marathon of Iranol is not finished yet. The amounts sale of Iranol in the period of July 22 to August 21, 2020 compared to the same period in the previous year experienced 34% growth and this is despite the fact that this amount for 2019-20 compared to the same period in the previous year was facing a decrease of 27%.

Now is the time to review the exportation sales volume factor of Iranol. It is interesting to know that in the first 5 months of 2020-21 compared to the same period in the previous year the exportation sales volume increased 33% growth even though the exportation sales volumes in the first 5 months of 2019-20 compared to the same period in the previous year only increased at 30%.

In order to review the sales amounts of Iranol in IRR, understanding a variant is necessary which is the 70% increase of sales prices of engine products by the consumer support organization in March 2019 and even by applying 70% increase of prices in 2019-20 in the first 5 months of 2019-20 compared to the same period in the last year only 50% increase was experienced and the value in the same period in 2020-21 compared to the same period in the previous year was approximately 20% and this increase is achieved despite the fact that no increase of prices is announced for the current year and considering the increase of costs and expenses in the current year and selling the products at the previous year's prices, the 20% growth in IRR sales is an acceptable achievement.

Also the exportation sales volume of Iranol in July 22 – August 21, 2020 period compared to the same period in the previous year experienced a 164% increase despite the fact that the exportation sales of the company in the same period of 2019 compared to the previous year increased at 81%.

Overall, the declining trend of the first 5 months of 2019-20 compared to the same period of 2018-19 which is shown in the production and volume sales statistics of the company resulted in a totally ascending trend in 2020-21 and was the highest jump amongst oil producing companies in Iran in regards to production and sales volume supported by evidence and registered statistics.