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, has recorded a consolidated net profit of QR402.8m for the half year ended June 30, 2015.
Management reporting revenue for the first half, calculated by proportionately consolidating group results, was QR1.5bn, a decrease of QR634.4m, or 29.9 percent, on the same period of 2014 (2014, Q2: QR2.1bn) 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 that started to affect product prices.
MPHC closed the half year of 2015 with a consolidated net profit of QR 402.8m, a decrease of QR496.7m, or 55.2 percent over the same period in 2014, while the second quarter earnings were significantly up by 146.7 percent, over the first 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 mainly due to increase in sales volumes following successful completion of the planned major maintenance shutdowns in Q1 2015.
The groups’ profit was also aided by recognition of a tax refund of QR37.4m 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 first six months of operations and after distribution of previous year’s dividend of QR1.3bn, was a robust QR1.2bn. Total assets at June 30, 2015 was at QR16.8bn, a decrease of QR1.7bn, or 9.1 percent, compared to the previous year end. The total debt is QR1.4bn down QR0.1bn versus December 31, 2014, arising from one of the group’s joint venture.
