DOHA: Mesaieed Petrochemical Holding Company (MPHC), a subsidiary of Qatar Petroleum and one of the region’s premier diversified petrochemical conglomerates, delivered an impressive net profit of QR463.8m for the first quarter of 2014 (Q1, 14).
H E Dr Mohamed bin Saleh Al Sada, the Minister of Energy and Industry, and the Chairman of MPHC, said in a filing to Qatar Exchange that all group companies performed in line with budgeted expectations. “In addition, cash generation remained strong, with a total of QR629.5m of cash from operations across all group companies for the first quarter. These results compare favourably to the group’s 2013 four-month performance, and bode well for the balance of year outlook”, Dr Al Sada said.
Elaborating on the financial results, Khalid Al Subaey, Chief Coordinator, MPHC, said: “Total cash and cash equivalents across all group companies grew by QR459.9m during the quarter to a total of QR2bn, indicating the group’s healthy cash position.”
On the performance of various segments of the group, Al Subaey said the revenue of the combined Q-Chem/Q-Chem II business unit for the first quarter of 2014 reached QR908.3m. The revenue was largely on par with the companies’ performance in the last four months of 2013, and was primarily based on strong polyolefin utilisation rate of 123 percent.
The polyolefin/alpha-olefin sales mix was adjusted versus the last four months of 2013 in order to take advantage of pricing and market opportunities identified during the quarter. As a result, polyolefins constituted 71 percent of revenue, alpha-olefins 27 percent with the remainder attributable to other minor products.
Combined EBITDA for the period was QR585.4m, at a creditable EBITDA margin of 64.5 percent, as the business unit continued to benefit from the supply of competitively-priced ethane feedstock by Qatar Petroleum. Net profit for the quarter was QR444.9m and net profit margin was 49.0 percent, with the difference between net profit and EBITDA primarily due to current and deferred taxes (QR81m) and depreciation (QR55.2m). Total assets of the combined Q-Chem/ Q-Chem II business unit as at March 31, 2014 were QR7.3bn, with cash and cash equivalents before dividends increasing by QR367.3m versus the year-end, to close at QR1.3bn. Total debt was QR1.8bn, with the entire balance due by Q-Chem II, while the combined companies’ cash realisation ratio was over 100 percent.
“QVC registered revenue of QR174.5m from the sale of its chlor-alkali products,” said Al Subaey. “Results were not materially impacted by planned shut-downs of the company’s EDC, VCM and caustic soda facilities, as sales volumes were boosted by the release of prior period inventory.”
Net profit recorded during the period was QR8.1m. Subject to fulfilling specified conditions in a clarification received from Public Revenues and Tax Department, MPHC is eligible for a tax refund of QR 13.2m for the period from the date of the company’s listing to the end of the accounting period on March 31, 2014.