DOHA: Mesaieed Petrochemical Holding Company (MPHC), a subsidiary of Qatar Petroleum and one of the region’s premier diversified petrochemical conglomerates with interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products, recorded a consolidated net profit of QR786.2m for the nine months period ended September 2015.
Management reporting revenue for the nine months, calculated by proportionately consolidating group results as per (international accounting standard 31) IAS 31, was QR 2.4bn, a decrease of QR 802.2m, or 24.8 percent, on the same period of 2014 (2014, Q3: QR 3.2bn) primarily due to planned facility maintenance in the current period, which has been successfully completed, and weaker product prices following the significant fall in the global oil prices in Q4, 2014.
MPHC closed the nine months period, with a consolidated net profit of QR 786.2m, a decrease of QR 590.7m, or 42.9 percent, over the same period in 2014, while the third quarter earnings were significantly up by 33.8 percent, over the second quarter of 2015. The year-on-year reduction was driven by planned major maintenance shutdowns and due to weak product prices.
“The preventive maintenance and warranty shutdowns are an essential requirement for large, industrial plants as they can help minimise unplanned disruption, ensure product quality is maintained and ultimately, contribute to an extension of plant’s production life. The quarter-on-quarter substantial increase was primarily due to increase in selling prices and improved sales volumes,” MPHC stated yesterday.
The groups’ profit was also aided by recognition of a tax refund of QR 72.7m for the period. The group continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements with Qatar Petroleum.
This contracting arrangement is an important value driver for the group profitability in a challenging market condition.
The closing cash position across all group companies after the nine months of operations and after distribution of previous year’s dividend of QR1.4bn, was a robust QR1.5bn.
Based on the proportionate consolidation, the total assets at September 30, 2015 was QR16.8bn, compared to the 31 December 2014 total assets of QR18.5bn. The total debt is QR1.35bn down QR0.17bn versus December 31, 2014, arising from one of the group’s joint venture.
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.
