HE Dr al-Sada: New era for MPHC and Qatar.
Mesaieed Petrochemical Holding Company (MPHC), the latest firm to be listed on the Qatar Exchange, posted a four-month net profit of QR600mn until December 2013.
A subsidiary of Qatar Petroleum and partially floated on the Qatar Exchange, MPHC is one of the region’s “premier diversified petrochemical conglomerate” with interests in the production, distribution and sale of olefins, polyolefins, alpha olefins and chlor-alkali products.
MPHC acts as the holding company of six firms (three of them directly held) and holds 49% each of the issued share capital of Q-Chem and Q-Chem II, and 55.2% of the issued share capital of Qatar Vinyl Company.
Both Q-Chem and Q-Chem II each have a single, wholly-owned subsidiary, while Q-Chem II also has an effective ownership of 53.85% of Ras Laffan Olefins Cracker Company. The group’s facilities are all based in Qatar, and are primarily engaged in the production of olefins, polyolefins, alpha olefins, and chlor-alkali products.
In a statement after the group’s first board of directors meeting, HE the Minister of Energy and Industry Dr Mohamed bin Saleh al-Sada, also MPHC chairman, said, “At the outset, and on behalf of the board of directors, I would like to thank HH the Emir, Sheikh Tamim bin Hamad al-Thani, for his generosity and support both before and throughout the IPO of Mesaieed Petrochemical Holding Company. It is due to His Highness’ support that we are able to announce these first published results of Mesaieed Petrochemical Holding Company, and declare a dividend.”
The board of directors proposed a cash dividend of QR0.4bn, equivalent to a payout of Dh35 a share and representing 3.5% of the nominal value for the four months that ended on December 31, 2013. This proposed dividend distribution represents 72.1% of the group’s profits.
Al-Sada said, “In line with the continuous support and directions from HH the Emir, it was recommended that the shareholders as of the close of trading on the last trading day before the group’s first post-IPO annual general assembly meeting will be entitled to receive a dividend relating to the four-month period ended December 31, 2013 despite the fact that MPHC was only listed on February 26, 2014.”
Al-Sada said, “The close of this first financial period marks the beginning of a new era for MPHC and Qatar. The board of directors and senior management look forward to the future with confidence in the sound competitive advantages of the group and strong government support. “
MPHC chief coordinator Khalid al-Subaey said, “Net profit for the four-month period to December 31, 2013 was QR0.6bn. This period was marked by relatively stable market conditions and operations - utilisation rates remained strong and no major shut-downs were noted. Profits were also aided by the supply of competitively-priced ethane feedstock and fuel gas under long-term supply agreements with Qatar Petroleum. And, cash across all group companies increased by QR0.2bn during the four-month period to a total of QR1.5bn.”