Immediate Release : Qurain Petrochemical Industries Company posts KD0.93 (US$3.3) million for the first quarter of the financial year 2014/2015
Kuwait City, 22 July, 2014: Qurain Petrochemical Industries Company (QPIC) has announced a net profit of KD0.93 million (US$3.3 million) for the first quarter of the 2014/2015 financial year ended 30 June 2014. This represents a decrease of 77.6% or KD 3.2 million (US$11.4 million) from the KD 4.15 (US$14.7) million net profit posted during the same period last year mainly due to the poor performance from Kuwait Paraxylene Production Co. (KPPC). Earnings per share (EPS) for the quarter stood at 0.88 fils (US$3.1 cents) compared to an EPS of 3.89 fils (US$13.8 cents) in the previous financial year.
Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, QPICâ€™s Chairman, said â€œThe main two contributors in achieving these results were the higher share of income received from Saudia Dairy and Foodstuff Co. (SADAFCO), in addition to the realized gains on partial sale of QPICâ€™s portfolio shares. Variance in comparison with last yearâ€™s performance is mainly attributed to Kuwait Aromatics Companyâ€™s lower share of income driven by KPPCâ€™s poor profitability.â€
On QPICâ€™s future plans, he added:
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:
"Sales revenues at KD1.0 (US$3.54) million have increased by 7.5% or KD 0.07 million (US$0.25 million) over the same period last year. Total assets stood at KD 358.8 million (US$1,271 million) as at 30 June 2014 compared to KD 364.3 million (US$1,290 million) on 31 March 2014. Investments in associate companies increased by 0.2% or KD 0.26 million (US$0.92 million) during the said period owing to the net increase in share of profits from SADAFCO and National Petroleum Services Co. (Napesco). â€œ
Commenting on KPPC, He added:
â€œFollowing KPPCâ€™s impressive performance during the previous year due to its products reaching their cyclical peak prices, the anticipated downturn in its productsâ€™ prices have started effecting its performance and profitability which significantly dropped during the year. QPIC remains waiting for Kuwait Petroleum Corporationâ€™s intervention in order to resolve the pending issues and restructure the company to prevent the project from faltering.â€
Notes to Editors:
Established in 2004, Qurain Petrochemical Industries Company (QPIC) is a holding company with a total capital of one hundred and ten million Kuwaiti dinars distributed over a billion and one hundred million shares distributed to over 450 thousand shareholders across Kuwait, and focuses on investing within the Energy & Industrial sectors.
The company was founded with a clear direction from the government of Kuwait represented by the Petrochemical Industries Company (PIC) in order to engage the private sector to participate within the Oil&Gas sector and create local industries that adds value to our national economy.
Our Investments portfolio combines stakes of Kuwaitâ€™s largest petrochemical projects such as Equate Petrochemicals, The Kuwait Olefins Company (TKOC) and Kuwait Aromatics (KARO). In addition to our significant stakes being a majority shareholder in Saudia Dairy & Foodstuff Company (SADAFCO), United Oil Projects (UOP), as well as National Petroleum Services Company (NAPESCO).
QPIC is a subsidiary of Kuwait Projects Company (KIPCO) - which is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 32 billion as at 31 March, 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