Mesaieed Petrochemical Holding Company, a Qatar Petroleum subsidiary and one of the region’s premier diversified petrochemical conglomerates with interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products, posted a net profit of nearly QR995mn in 2016, MPHC said yesterday.
However, profit was down 8% (QR92.5mn) on QR1.08bn recorded in 2015.
The total assets (as on December 31, 2016) were QR14.4bn compared to QR14.3bn in December, 2015.
MPHC, which holds stocks in Q-Chem, Q-Chem II and QVC, registered an an earnings per share of Dh79 in 2016.
The year-on-year decrease was due to the decline in selling prices (by 7%) despite “improved” sales volumes in the midst of a challenging market, MPHC said.
This reduction was partially offset by the cost savings arising from the cost optimisation initiatives undertaken by the group. These initiatives have resulted in improvement in many operating areas and the achievement of an overall cost savings of 6% from the 2016 budget.
The group’s profit was also aided by a tax refund of approximately QR89.8mn booked during the year. The group continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements.
“These contractual arrangements are an important value driver for the group’s profitability in the current challenging market conditions,” MPHC said.
A statement issued by MPHC said, “The year 2016 was a crucial year as the group continued to excel in a highly volatile and competitive environment. The group witnessed significant instability in selling prices as the product prices declined by 7% on average compared to the previous year on account of the plunge in global crude oil prices. However, the product prices recovered in November and December of 2016 following the recent uplift in crude oil prices. The financial and operational results were commendable despite the fluctuation in prices, and exceeded the group’s budget. With the successful completion of the periodic turnaround in some of the plants in the previous year, the production and sales volumes witnessed a significant improvement during the year.”
MPHC said its closing cash position (as on December 31, 2016) after distribution of the previous years’ dividend of QR854mn was a robust QR1.08bn.
Total dividend QR754mn; QR0.6 per share
The MPHC board of directors has recommended a total annual dividend distribution of QR754mn, equivalent to a payout of QR0.6 per share, representing 76% of the group’s profit.