Mesaieed Petrochemical Holding Company (MPHC) - an umbrella entity for Q Chem, Q Chem II and Qatar Vinyl Company (QVC) - has reported net profit of QR1.8bn in 2014.
The board has suggested 11% or QR1.1 cash dividend, which is equivalent to 77% of the group’s profits.
Revenue stood at QR4.3bn, a company spokesman said after the board meeting.
The group continued to maintain strong Ebitda (earnings before interest taxes depreciation and amortisation) 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 (QP) and the recognition of a tax refund from the Public Revenues and Tax Department.
These commendable results were achieved despite QVC witnessing planned maintenance during the first half of the year, and heightened operating costs.
MPHC’s liquidity position remained strong during the year on buoyant cash realisation ratios across all group companies, with cash held across the group after distributing the previous year’s QR439.7mn dividend, of about QR2.7bn. Total assets closed the year at QR14.6bn, an increase of 11%, compared to the previous year.
Its Q Chem/Q Chem II segment recorded revenue of QR3.5bn during 2014, despite 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 2014, polyolefins constituted 71% of revenue, alpha-olefins 26% with the remainder attributable to other minor products.
Ebitda for the year was QR2.2bn. The segment’s commendable quarterly Ebitda margin of 57.9% 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, total combined assets 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%.
QVC registered full year revenue of QR0.8bn. Results for 2014 were impacted by planned shut-downs of the company’s EDC (endocrine disrupting chemicals), VCM (vinyl chloride monomer) and caustic soda facilities, principally during the first half of the year.
Net profit for the year was QR72.1mn, while Ebitda was QR166.6mn. Year to date profit margins were adversely affected by expenditure related to the major shut-down and weak comparative selling expenses.