DOHA: Mesaieed Petrochemical Holding Company (MPHC), a subsidiary of Qatar Petroleum and one of the region’s premier diversified petrochemical conglomerates, reported a net profit of QR357m for the first quarter of 2018, a significant 68 percent jump from QR212m reported for the same period in 2017.
The earnings per share stood at QR0.28 compared to QR0.17 reported during the corresponding period of the previous year.
The increase in profit was driven by improved sales volumes, as the previous year witnessed planned maintenance shutdowns in some of the group companies’ plants. Improved selling prices by circa 5 percent further contributed to the surge in earnings.
As compared to the previous quarter, the net profit was up by QR74m or 21 percent due to improved sales volumes and selling prices, in addition to reduction in operating costs.
The financial results exceeded the group’s budget expectations by over 60 percent. The groups’ profit for the quarter was also aided by the recognition of a tax refund of approximately QR34m for the quarter.
The group continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements. This contracting arrangement is an important value driver for the group’s profitability in a challenging market condition.
The closing cash position after the first three months of operations was a robust QR1bn as at March 31, 2018.
The total assets at March 31, 2018 stood at QR14.3bn, compared to QR14.8bn as at December 31, 2017.
