MPHC posts 7-fold rise in net profit to QR909mn
August 05 2021 11:13 PM
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The group revenue almost doubled year-on-year to QR1.9bn (assuming proportionate consolidation).
The group revenue almost doubled year-on-year to QR1.9bn (assuming proportionate consolidation).

SP, Doha

Mesaieed Petrochemical Holding Company (MPHC) has reported about seven-fold year-on-year growth in net profit to QR909mn in the first six months (H1) of this year.
The group revenue almost doubled year-on-year to QR1.9bn (assuming proportionate consolidation).
"The main highlight of MPHC’s performance was a sequential macroeconomic recovery which led to a solid demand relating to basket of our products coupled with supply constraints, and resulted in an improved set of financial results," Ahmad Saif al-Sulaiti, chairman of MHPC said.
The economic momentum carried from the latter part of last year, on the back of satisfactory vaccination drive and easing out of geographical lockdowns in major markets, led to a sequential recovery in demand for petrochemicals and chlor-alkali products, and positively reflected on selling prices.
The blended product prices on an average increased by 57% on a yearly basis, translating into QR721mn increase in the MPHC’s bottom line. The renewed product demand supplemented by supply constraints resulted in significant growth in commodity prices.
Sales volumes grew 26% year-on-year, driven by improved operating rates, thus leading to an increase of QR238mn in MPHC’s bottom line.
The positive trajectory in product prices and improved volumes were "slightly" offset by increase in variable costs, which contributed QR191mn negatively in the H1, 2021 net earnings against the same period last year.
The current period net earnings were positively impacted by favourable variance amounting to QR75mn, in relation to inventory differentials, due to lesser drawdowns during the period in comparison to H1, 2020.
Liquidity remained robust with cash and cash equivalents reaching QR2.8bn at the end of June 30, 2021. Total assets amounted to QR16.5bn and total equity QR16.1bn in the review period.
A segment wise analysis shows that the petrochemicals saw more than eight-fold growth in net profit to QR650mn in H1, 2021. This notable increase in profitability was primarily driven by improved product prices owing to improved macro environment and supply shortages.
The growth in product prices coupled with 23% growth in sales volumes led to an overall rise in revenue by 85% within the segment, to QR1.4bn for the current period.
The chlor-alkali segment witnessed a more than 50-fold expansion year-on-year in net profit to QR 252mn in H1, 2021.
This was primarily driven by a significant improvement in blended average selling prices, which increased by 82% year-on-year, complemented by renewed demand of end products (PVC, aluminium, polymers) on the back of constructive macroeconomic drivers and supply shortages in certain regions.
The growth in product prices coupled with 30% jump in sales volumes led to an overall increase in revenue by 136% within the segment, to QR547mn for the current period.
 
 



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