MPHC nine-month net profit surges 335% to QR1.4bn
October 27 2021 08:59 PM
MPHC nine-month net profit surges 335% to QR1.4bn

Doha

Strong product prices helped Mesaieed Petrochemical Holding Company (MPHC) report a stupendous 335% surge year-on-year in net profit to QR1.4bn during the nine-month (9M) ended September 30, 2021.
The group revenue improved 88% year-on-year to QR3bn and earnings-per- share was QR0.114 compared to QR0.026 during 9M-20.
During the period, blended product prices on an average soared 56% year-on-year, translating into an QR1.1bn increase in bottom line earnings.
"The renewed product demand supplemented by supply constraints resulted in improved commodity prices," a company spokesman said.
Sales volumes increased by 20% year-on-year, driven by improved plant operating rates. The overall growth in sales volumes translated into an increase of QR307mn in MPHC’s bottom line earnings.
The positive trajectory in product prices and improved volumes were slightly offset by increase in variable costs, which contributed QR263mn negatively towards MPHC’s 9M-21 net earnings compared to the same period last year.
The current period net earnings were positively impacted by favourable variance amounting to QR33mn, in relation to inventory differentials, due to lesser drawdowns during the period in comparison to 9M-20.
MPHC’s operations continue to remain "robust and resilient" with total production reaching 891,000 metric tonnes, up 22% year-on-year.
The overall increase in production volumes was mainly attributed to the improved plant operating rates during 9M-21, as major planned turnarounds and preventive maintenance shutdowns were carried out at certain MPHC’s joint venture facilities during 9M-20.
On a group level, liquidity remained robust with cash and cash equivalents reaching QR3.2bn at the end of September 30, 2021.
Total assets amounted to QR17bn and total equity was QR16.7bn at the end of nine month ended September 30, 2021.
The petrochemicals segment reported a net profit of QR1bn during 9M-21, which zoomed 327% year-on-year, primarily driven by improved product prices owing to improved macro environment and the supply shortages.
Sales volumes also increased by 17%, compared to the same period last year, against a backdrop of higher plant operating days in the current period against 9M-20.
The growth in product prices, coupled with improved sales volumes, led to an overall rise in revenue by 75% within the segment, to QR2.1bn for the current period.
The production volumes increased by 21% year-on-year during 9M-21, as the segment had planned periodic turnaround of Q-Chem II facilities during the first quarter of 2020, which affected overall operating rates for 9M-20 in comparison to 9M-21.
The chlor-alkali segment reported a net profit of QR418mn during 9M-21, which showed an almost 10-fold increase year-on-year, primarily driven by a significant 85% jump in blended average selling prices, complemented by renewed demand of end products (PVC, aluminium, polymers) on the back of constructive macroeconomic drivers and supply shortages, amid supply chain crunch and weather linked disruption in certain regions.
Sales volumes soared 25%, compared to the same period last year, against a backdrop of better utilisation rates in the current period. Growth in product prices coupled with sales volumes led to an overall increase in revenue by 132% within the segment, to QR874mn for the current period.
The production volumes rose by 24% year-on-year, as the segment had more planned periodic shutdown days during 9M-20.



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