DOHA: Mesaieed Petro-chemical Holding Company (MPHC), a subsidiary of Qatar Petroleum partially floated on the Qatar Exchange, has recorded QR 0.6bn net profit for the four-month period ended December 31, 2013.
In comments issued to the Qatar Exchange after the group’s first Board of Directors meeting for 2014, H E Dr Mohammed bin Saleh Al Sada, the Minister of Energy and Industry and Chairman of Mesaieed Petrochemical Holding Company, said the board proposed a cash dividend of QR0.4bn, or QR 0.35 per share.
As per the directives of the Emir H H Sheikh Tamim bin Hamad Al Thani, the proposed dividends will be distributed to the shareholders a day before the first general assembly meeting of the company, scheduled to be held on April 9, 2014. This recommended dividend is equivalent to 72.1 percent of net profit.
Commenting on the financial results, Khalid Al Subaey, Chief Coordinator, Mesaieed Petrochemical Holding Company, said, “Net profit for the four-month period to December 31, 2013 was QR0.6bn. This period was marked by relatively stable market conditions and operations — utilisation rates remained strong and no major shut-downs were noted. Profits were also aided by the supply of competitively-priced ethane feedstock and fuel gas under long-term supply agreements with Qatar Petroleum. And, cash across all group companies increased by QR0.2 bn during the four-month period to a total of QR1.5bn.”
A breakdown of the segmental financial results showed the combined revenue performance of Q-Chem and Q-Chem II recording revenue of QR1.2bn for the four-month period ended December 31, 2013, with polyolefins constituting 62 percent of the revenue, alpha olefins almost 26 percent and the remainder attributable to ethylene and other minor products.
During the period, 148,000 MT of polyolefins and 65,000 MT of alpha olefins were produced at utilisation rates of 112 percent and 99 percent, respectively, broadly in line with historical averages, the company said.
On the QVC’s performance, Al Subaey said the revenue from the sale of chlor-alkali products for the four-month period was QR0.3bn. Net profit recorded during the period was QR0.04bn, with a net profit margin of 12.3 percent, while EBITDA was QR0.07bn and EBITDA margin 21.6 percent.
“The close of this first financial period marks the beginning of a new era for MPHC and the state of Qatar. The Board of Directors and senior management look forward to the future with confidence in the sound competitive advantages of the group and strong government support”, Dr Al Sada said.