Mesaieed Petrochemical Holding Company (MPHC) has reported a net profit of QR281m the first quarter of this financial year ended March 31(Q1 2019). The earnings per share (EPS) of the company for the period stood at QR 0.22 against QR 0.28 for the corresponding period last year, down by QR76m (21 percent). The decrease in profit is primarily due to reduction in sales volumes and selling prices.
MPHC is one of the region’s premier diversified petrochemical conglomerates with interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products. The decrease in profit is primarily due to reduction in sales volumes and selling prices.
The group’s profit was also aided by the recognition of a tax refund of approximately QR33m for the quarter. The group continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements. These contracting arrangements are an important value driver for the group’s profitability in a competitive market environment.
The petrochemical segment’s profit for the quarter as compared to the corresponding period of previous year was impacted primarily by the drop in selling prices. While the production and sales volumes marginally increased by 1 percent, the selling prices dropped by 12 percent.
The Chlor-Alkali segment’s profit reduced from previous year primarily due to decrease in sales revenue and other income. Sales revenue was impacted by the decrease in sales volumes by 10 percent and decrease in selling prices by 14 percent. Production was marginally lower by 2 percent from previous year.
The closing cash position after the first three months of operations was a robust QR 1.3 billion as at 31 March 2019. The total assets at March 31, 2019 was QR14.6bn, compared to QR15.3bn as at December 31, 2018.
