ENP Newswire - 09 May 2014
Release date- 08052014 - Kuwait City - Qurain Petrochemical Industries Company posted KD 27.5 million net profit for the financial year ended 31 March 2014.
This represents an increase of 24% or KD 5.3 million from the KD 22.2 (US$ 78.6) million net profit posted the previous financial year. Earnings per share (EPS) for the year stood at 25.94 fils (US$ 9.2 cents) compared to an EPS of 20.34 fils (US$ 7.2 cents) in the previous financial year.
Total assets stood at KD 364.3 million (approximately US$ 1,291.0 million) as at 31 March 2014 compared to KD 299.0 million (US$ 1,059.8 million) on 31 March 2013, representing an increase of 22% or KD 65.2 million (US$ 231.2 million). Investments in associate companies increased 169% or KD 83.5 million (US$ 295.8 million) during the said financial year primarily due to new investments in Saudia Dairy & Foodstuff Co. (SADAFCO), as well as National Petroleum Services Co. (NAPESCO).
Commenting on these results, QPIC's Chairman, Sheikh Mubarak Abdullah Al Mubarak Al Sabah said: 'QPIC's Board of Directors has recommended the distribution of cash dividends at 10 % of the company's paid up capital, or 10 fils per share, subject to the approval of relevant authorities and QPIC's Annual General Assembly.'
He added: 'Our net profits exceeded expectations during the final quarter of the financial year, standing at KD 18.5 million (US$ 65.7 million). This is due to the higher dividend distribution from EQUATE Petrochemicals and The Kuwait Olefins Company, in addition to QPIC's share of profits from Kuwait Aromatics Company (KARO) and the other investments.'
Commenting on the company's investment in aromatics, QPIC's Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali said: 'Despite the improved performance of the aromatics project (paraxylene) during the financial year owing primarily to its products' prices reaching their peaks, the matter remains subject to market performance, which noticeably dropped during the first quarter of 2014.
QPIC is exploring ways to improve the project's performance, bringing it to the level of similar projects around the world, as failure would negatively impact QPIC results. This is being done in coordination with KARO's management and our project partners, Petrochemical Industries Company and Kuwait National Petroleum Company. This has resulted in reasonable but not permanent improvement in some elements of the project. We continue to wait for Kuwait Petroleum Corporation's intervention in order to resolve pending issues to prevent the project from faltering.'
On QPIC's future plans, he said: 'We are looking with hope at the Kuwaiti government's initiatives to develop the local oil and gas sector with the intention of accelerating the development of the local industry. This will serve to support this vital sector so that it may counter any future challenges with new global technologies and shale gas explorations.'
He emphasized the importance of developing the local industries along with the private sector, especially at the downstream, level for the added value. Mr. Ali added that QPIC is actively seeking new partnerships with reputed entities and major financial consulting agencies to select viable investment opportunities across the GCC and the Middle East Region.
Notes to Editors
Established in 2004, Qurain Petrochemical Industries Company (QPIC) is a holding company with a total capital of one hundred and ten million Kuwaiti dinars distributed over a billion and one hundred million shares distributed to over 450 thousand shareholders across Kuwait, and focuses on investing within the Energy & Industrial sectors.
The company was founded with a clear direction from the government of Kuwait represented by the Petrochemical Industries Company (PIC) in order to engage the private sector to participate within the Oil&Gas sector and create local industries that adds value to our national economy.
Our Investments portfolio combines stakes of Kuwait's largest petrochemical projects such as Equate Petrochemicals, The Kuwait Olefins Company (TKOC) and Kuwait Aromatics (KARO). In addition to our significant stakes being a majority shareholder in Saudia Dairy & Foodstuff Company (SADAFCO), United Oil Projects (UOP), as well as National Petroleum Services Company (NAPESCO).
QPIC is a subsidiary of Kuwait Projects Company (KIPCO) - which is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 30.5 billion as at 31 December, 2013. The Group has significant ownership interests in over 60 companies operating across 24 countries. The group's main business sectors are financial services, media, real estate and manufacturing. Through its core companies, subsidiaries and affiliates, KIPCO also has interests in the education and medical sectors.
For more information please visit: www.qpic-kw.com
Mr. Abdul-Hameed Malhas