Qurain Petrochemical Industries Company announces 83% increase in net profit for the first half of FY2014/2015
- Operational Income for Q2 has increased by 153% due to new acquisitions
- Extraordinary Unrealized gains of KD 12.9 million due to reclassification of SADAFCO as a subsidiary
Kuwait City, 6 November 2014: QPIC - Qurain Petrochemical Industries Company - has announced a net profit of KD 14.8 million (US$ 51.2 million) for the six months ended 30 Sept 2014, an increase of 83 per cent over the KD 8.1 million (US$ 28.0 million) profit reported for the same period last year.
Earnings per share (EPS) for the same period stood at 14.03 fils (US$ 48.62 cents) compared to 7.60 fils (US$ 26.34 cents) for the same period last year.
Commenting on the results, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, QPICâ€™s Chairman, said:
â€œOperational income for the second quarter was 153 per cent higher than the same period last year, coming to KD 11.8 million (US$ 41.0 million) compared to KD 4.7 million (US$ 16.2 million) last year. This is despite the significantly lower profitability from Kuwait Aromaticâ€™s (KARO), mainly owing to the new acquisitions made by the company.â€
â€œProfits for the second quarter (July 1st to September 30th) stood at KD 13.8 million (US$ 48.0 million), significantly higher than anticipated, mainly owing to the extraordinary unrealized gains of KD 12.9 million (US$ 44.7 million) accrued due to the reclassification of SADAFCO â€“ Saudia Dairy & Foodstuff Company â€“ as a subsidiary following the acquisition of an additional 11% stake during the quarter. QPICâ€™s ownership in SADAFCO now stands at 40 per cent.â€
On QPICâ€™s plans, he said:
â€œWe are looking with hope at the Kuwaiti governmentâ€™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, being 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.â€
Commenting on these results, QPICâ€™s Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali said:
"Total revenue for the first six months stood at KD 26.7 million (US$ 92.5 million), an increase of 175 per cent compared to KD 9.7 million (US$ 33.6 million) for the same period last year. Total assets for the first half increased to KD 493.5 million (US$ 1,711 million), a significant rise of 35 per cent compared to KD 364.3 million (US$1,262 million) on 31 March 2014, owing to the reclassification of SADAFCO as a subsidiary instead of an associate following the additional increase in ownership. â€œ
Regarding Kuwait Paraxylene Production Company (KPPC), fully owned by KARO, he said:
â€œFollowing KPPCâ€™s impressive performance the previous year due to its products reaching their cyclical peak prices, the anticipated downturn in its productsâ€™ prices have started effecting its performance and profitability. AS a result, share of profits from KARO have significantly dropped by nearly 88% compared to the same period last year. QPIC remains confident that Kuwait Petroleum Corporation will intervene in order to resolve the pending issues and restructure the company to prevent the project from faltering.â€
Notes to Editors:
Established in 2004, Qurain Petrochemical Industries Company (QPIC) is a holding company with a total capital of one hundred and ten million Kuwaiti dinars distributed over a billion and one hundred million shares distributed to over 450 thousand shareholders across Kuwait, and focuses on investing within the Energy & Industrial sectors.
The company was founded with a clear direction from the government of Kuwait represented by the Petrochemical Industries Company (PIC) in order to engage the private sector to participate within the Oil&Gas sector and create local industries that adds value to our national economy.
Our Investments portfolio combines stakes of Kuwaitâ€™s largest petrochemical projects such as Equate Petrochemicals, The Kuwait Olefins Company (TKOC) and Kuwait Aromatics (KARO). In addition to our significant stakes being a majority shareholder in Saudia Dairy & Foodstuff Company (SADAFCO), United Oil Projects (UOP), as well as National Petroleum Services Company (NAPESCO).
QPIC is a subsidiary of Kuwait Projects Company (KIPCO) - which is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 32 billion as at 30 September 2014. The Group has significant ownership interests in over 60 companies operating across 24 countries. The groupâ€™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 further information, please visit: www.qpic-kw.com or contact:
Corporate Communication & Relation Officer
Tel: +965-2294-3232 Ext: 2012
Nabil F. Fayed
Administrative Affairs Manager
Tel: +965-2294-3232 Ext: 2041