Mesaieed Petrochemical Holding (MPHC), a holding entity that has interests in petrochemicals and chlor alkali, has reported a net profit of QR1.8bn in 2022.
The board has proposed a total dividend of QR1.38bn for 2022, representing a pay-out ratio of 78% of 2022 net earnings. A dividend of QR0.11 per share represents a dividend yield of 5.2% on the closing share price as of December 31, 2022, subject to the approval of general assembly.
“We successfully navigated macroeconomic obstacles that challenged our business dynamics, and we were able to achieve a resilient set of financial results. In a volatile market, our teams worked relentlessly to mitigate any operational disruptions, and continued to focus on our business strengths, while building our reputation of delivering solid results in achieving operational excellence," said Ahmad Saif al-Sulaiti, chairman of MPHC.
Group revenue remained flat year-on-year at QR3.9bn. Earnings-per-share amounted to QR0.141 in 2022.
During the year, average blended product prices fell 2% year-on-year, translating into a QR40mn decline in MPHC’s current year net earnings. Subdued product demand along with excess supply resulted in lowered commodity prices.
On the other hand, sales volumes improved 2% on an annualised basis, mainly driven by better plant operating rates. Positive growth in sales volumes translated into an increase of QR53mn in MPHC’s 2022 net earnings.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) amounted to QR2.2bn, a decline of 3% year-on-year, mainly due to flattish revenue and higher operating cost. Ebitda margins stood at 55% in 2022 against 57% in 2021.
Liquidity remained robust with cash and bank balances standing at QR4.5bn at the end of December 2022. Total assets amounted to QR17.8bn and total equity amounted to QR17.4bn.
The petrochemicals segment reported a net profit of QR1.2bn, down 13% year-on-year, primarily driven by a 6% decline in revenue.
The chlor-alkali segment reported a net profit of QR504mn in 2022, increasing by 6% due to improvement in sales volumes, which increased by 16%, amid better plant operating rates as last year volumes were affected by a large-scale shutdown carried out during the fourth quarter of 2022. The segment revenues grew 15% year-on-year to QR1.21bn in 2022.
