MPHC records QR468.6m net profit in H1

07/08/2017 06:07 AST

Mesaieed Petrochemical Holding Company (MPHC), a subsidiary of Qatar Petroleum and one of the region's premier diversified petrochemical conglomerates, delivered a net profit of QR468.6m for the six month period ended June 30, 2017.

MPHC's earnings per share stood at QR 0.37 and profit edged down marginally by 4 percent from a year ago.

Reduced sales volumes on periodic turnaround in some of the group companies' plants are offset by the increase in selling prices.

The financial performance significantly exceeded the group's budget expectations. The group's profit for the period was also aided by recognition of a tax refund of approximately QR42.8m for the period.

The group continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements. This contracting arrangement is an important value driver for the group's profitability in a challenging market condition.

The closing cash position after the first six months of operations and after distribution of previous years' dividends of QR716.5m, was a robust QR876.3m. The total assets at June 30, 2017 were QR14.1bn, compared to QR14.4bn as at 31 December 2016.

The group is closely monitoring the effect of the blockade and is amending the flow of operations and activities when deemed necessary.

MPHC is one of the region's premier diversified petrochemical conglomerates with interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products.

MPHC was incorporated as a Qatari joint stock company on May 29, 2013 with an agreed effective date for the transfer of Qatar Petroleum's previous shareholding in the joint ventures of September 1, 2013.

The main activity of MPHC is to act as a holding company. Q-Chem is currently owned by MPHC (49 percent), Chevron Phillips Chemical International Qatar Holdings L.L.C. (49 percent) and QP (2 percent), and has one wholly-owned subsidiary, Q-Chem Distribution Company Limited,(ii) Q-Chem II is currently owned by MPHC (49 percent), CPCIQH (49 percent) and QP (2 percent), and has one wholly-owned subsidiary, Q-Chem II Distribution Company Limited, and an effective ownership interest of 53.85 percent in a joint venture, Ras Laffan Olefins Company Limited, which supplies ethylene to Q-Chem II; and QVC, which was incorporated in 1997 as a joint venture, and is currently owned by MPHC (55.2 percent), Qapco (31.9 percent) and QP (12.9 percent).

The Peninsula