DOHA: Mesaieed Petro-chemical Holding Company (MPHC), a subsidiary of Qatar Petroleum, has recorded a consolidated net profit of QR1.8bn for the full-year 2014.
MPHC, one of the region’s premier diversified petrochemical conglomerates with interests in the production, distribution and sale of olefins, polyolefins, alpha olefins and chlor-alkali products, reported revenue of QR4.3bn during the period. Revenue for the fourth quarter (Q4, 2014) was QR1.1bn, a decrease of QR11.5m, or 1 percent, compared to the previous quarter of 2014.
The group continued to maintain strong EBITDA margins across all segments, as results were aided by resilient key product prices, supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements with Qatar Petroleum and the recognition of a tax refund from the Public Revenues and Tax Department. These commendable results were achieved despite its QVC segment witnessing planned maintenance during the first half of the year, and heightened operating costs.
Consolidated net profit in the fourth quarter was QR0.4bn, a decline of QR0.1bn, or 12.3 percent, versus the third quarter, principally due to a drop in alpha-olefin sales volume and prices.
The group’s Q-Chem/Q-Chem II segment recorded revenue of QR3.5bn for the year ended December 31, 2014, while fourth quarter revenue was QR0.9bn, a marginal decrease of QR5.7m, or 0.7 percent, from the prior quarter, due to a drop in alpha-olefin sales volume and prices.
In line with the segment’s production and sales strategy, the polyolefin/alpha-olefin sales mix was adjusted in order to take advantage of pricing and market opportunities identified during the quarter. As a result, during the year ended December 31, 2014, polyolefins constituted 71 percent of revenue, alpha-olefins 26 percent with the remainder attributable to other minor products. Overall, prices of the company’s key products were lower in the fourth quarter of 2014 in comparison to the third quarter of 2014.
EBITDA for the year was QR2.2bn, and QR 0.5bn for the quarter. The segment’s commendable quarterly EBITDA margin of 57.9 percent was achieved as the companies continued to benefit from excellent operating results and competitively-priced ethane feedstock supplied by Qatar Petroleum. Net profit for the year was QR1.6bn, while the net profit for the fourth quarter was QR0.4bn, down by QR58.1m, or 14.2 percent, from the previous quarter. The net profit margin for the fourth quarter was 40.6 percent.
Total assets of the combined Q-Chem/Q-Chem II segment as at December 31, 2014 were QR7bn, and total debt was QR1.5bn.
The entire debt balance was due by Q-Chem II, while the combined companies’ cash realisation ratio was over 100 percent.
QVC registered full year revenue of QR0.8bn, while the fourth quarter revenue of QR0.2bn was marginally down on the previous quarter by QR12.5m, or 5.1 percent.
Net profit for the year ended December 31, 2014 was QR72.1m, while EBITDA was QR166.6m. Fourth quarter earnings were QR30.1m, an increase of QR6.4m, or 27.1 percent, against the previous quarter. Year to date profit margins were adversely affected by expenditure related to the major shut-down and weak comparative selling expenses.
The Board of Directors, in their meeting on January 7, 2015, recommended a total annual dividend distribution for the year ended December 31, 2014 of QR1.4bn. This is equivalent to a payout of QR1.10 per share and represents 77 percent of the group’s profits. This proposed dividend compares favourably to the previous distribution amount of QR439.7m, or QR 0.35 per share, that was paid for the four-month period ended December 31, 2013.
