MPHC records QR1.1bn full year net profit

15/02/2018 06:01 AST

Mesaieed Petrochemical Holding Company (MPHC), a subsidiary of Qatar Petroleum and one of the region's premier diversified petrochemical conglomerates, registered a robust net profit of QR1.1bn for the year ended 31 December, 2017, outperforming its previous year's net profit of QR995m.The year-on-year surge in profits was due to improved selling prices by 6 percent - in line with the crude oil price upswing - and increase in other income, despite the decline in sales volumes arising from the planned maintenance shutdowns in some of the group companies' plants. The group's earnings per share stood at QR0.87, compared to QR0.79 from a year ago.

2017 was characterized by a number of opportunities that have been successfully translated into stellar performance. The group successfully completed the planned maintenance shutdowns in some of its plants. Despite the shutdowns, the financial and operational results were commendable and exceeded the group's budget. The group achieved yet another milestone in successfully integrating Qatar Vinyl Company's support and core facilities with Qatar Petrochemical Company Limited (QAPCO), a joint venture between Industries Qatar and Total, the group said in a statement yesterday.

The group continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements. These contractual arrangements are an important value driver for the group's profitability in the current challenging market conditions.

The closing cash position as at 31 December, 2017 after distribution of the previous years' dividends of QR727m, was a robust QR1.4bn. Total assets as at 31 December, 2017 stood at QR14.8bn, compared to QR14.4bn as at 31 December, 2016. With these results, the group significantly exceeded its budget expectations.

The Board of Directors, in its meeting held on February 14, 2018, recommended a total annual dividend distribution for the year ended 31 December, 2017 of QR881m, equivalent to a payout of QR0.7 per share, representing 81 percent of the group's profit.

The Peninsula