Mesaieed Petrochemical Holding Company’s (MPHC) five-year strategy will centre on improving efficiency through its ongoing cost optimisation programmes and to invest selectively in capital projects.
“Optimisation of costs on processes, operations, and assets are planned over a five-year horizon that will reap additional value to MPHC’s shareholders. The Qatar Petrochemical Company- Qatar Vinyl Company integration resulted in further efficiencies in costs,” said MPHC chairman Ahmad Saif al-Sulaiti, who presided over the company’s annual general meeting, which approved the board’s recommendation to distribute QR0.8 per share, representing 72% of the group’s profit.
“We believe that continued investment in operating assets are essential to remain competitive in the market. These investments will further strengthen the group’s competitive position in the region,” al-Sulaiti said.
During the meeting, al-Sulaiti announced that Qatar Petroleum (QP) completed the distribution of the first tranche of free incentive shares to eligible MPHC shareholders who have fulfilled eligibility conditions before trading closed at the Qatar Stock Exchange in December 2018.
He said the distributed shares are equivalent to 50% of those allotted to shareholders at the time of the MPHC initial public offering (IPO). It comes in accordance with the mechanisms set forth in the MPHC IPO Prospectus, and in line with QP’s announcement when the shares of MPHC were issued for subscription in December 2013.
“The distribution of the second set of free incentive shares will take place on December 31, 2023. These shares will be distributed to eligible shareholders who meet the distribution conditions of keeping 50% of the allotted shares at the time of the IPO and according to the mechanisms set forth in the company’s IPO Prospectus,” al-Sulaiti continued.
According to al-Sulaiti, 2018 was “a commendable year” with a surge in profit over the previous year. The company witnessed “another year of stupendous financial and operational performance,” he noted.
“MPHC recorded a robust net profit of QR1.4bn during the year, signaling a solid continued commitment of the board of directors towards adding value to its shareholders,” al-Sulaiti pointed out.
He said sales volumes of group companies’ products were up by 4%, as the previous year witnessed planned maintenance in QChem. Subsequent to the seamless integration of Qapco-QVC, MPHC realised the synergies in operations and support functions resulting in about 5% reduction in fixed costs in 2018 compared to previous year, al-Sulaiti continued.
Also, total assets closed at QR15.3bn, with a solid liquidity position as cash held by the company stood at QR1.9bn as of December 31, 2018. MPHC’s share of revenue of the companies within the group for 2018 was QR3.6bn, a 14% increase over 2017, primarily due to improvement in selling prices by 10% and increase in sales volumes by 4% of the group companies’ products.