Higher group sales volumes and selling prices helped Mesaieed Petrochemical Holding Company (MPHC), a Qatar Petroleum subsidiary, register a 28% year-on-year growth in net profit to QR1.4bn in 2018.
The region’s premier diversified petrochemical conglomerate with interests in the production of olefins, poly-olefins, alpha olefins and chlor-alkali, has recommended a total annual dividend of QR1bn, equivalent to a payout of QR0.8 per share, representing 72% of the group’s profit.
The distributions, since inception (including the proposed distribution for 2018), amounts to QR5.3bn.
The profit for the year was also aided by the recognition of a tax refund of approximately QR169mn during the year.
The group continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements. QChem and QChem II also benefited from the increased availability of feedstock of 8% during the year through separate agreements.
"These contractual arrangements are an important value driver for the group to sustain its strong profitability in a highly competitive market environment," an MPHC spokesman said.
The closing cash position at the end of December 31, 2018, after distribution of the previous years’ dividends of QR855mn, was a robust QR1.9bn.
The total assets stood at QR15.3bn in 2018 compared to QR14.8bn the previous year. The company's earnings-per-share was QR1.11 in 2018 against QR0.87 a year ago.