QPIC posts 354% increase in first quarter net profits to KD 4.2 million (US$ 14.0 million)
Significant increase in share of income from subsidiaries and associates
Kuwait City, 5 August 2015: QPIC - Qurain Petrochemical Industries Company - has announced a net profit of KD 4.2 million (US$ 14.0 million) for the first quarter of the 2015/2016 financial year ending 31 March 2016. This compares favorably to a net profit of KD 0.9 million (US$ 3.1 million) posted during the same period last year, representing an increase of 354 per cent.
Earnings per share (EPS) for the quarter stood at 4.03 fils (US$ 13.30 cents) compared to 0.88 fils (US$ 3.00 cents) during the same period last year.
Consolidated sales revenue increased significantly to reach KD 14.6 million (US$ 48.2 million) from KD 0.01 million (US$ 0.03 million) reported for the same period last year owing the reclassification of SADAFCO - Saudia Dairy and Foodstuff Co. - from an associate investment to a subsidiary since July 2014, further to the acquisition made during the second quarter of 2014/2015.
Total assets stood at KD 530.6 million (US$ 1.75 billion) as at 30 June 2015, compared to KD 527.9 million (US$ 1.74 billion) on 31 March 2015. Investments in associate companies increased by 5 per cent or KD 3.3 million (US$ 10.8 million) during the said period owing to the net increase in share of profits from Kuwait Aromatics Co. (KARO) and National Petroleum Services Co. (Napesco).
Commenting on the results, QPIC’s Chairman, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, said:
“The results achieved showcase the soundness and diversification of QPIC’s investments, which can withstand the current economic circumstances that the region has encountered given the instability of oil markets conditions. QPIC is actively seeking new local and regional investment opportunities, in partnership with well reputed international players within the field.”
On his part, QPIC’s Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali, said:
“Performance from QPIC’s associates and subsidiaries has significantly improved, enabling QPIC to post results that exceeded our expectations. In particular, SADAFCO and KARO were the main contributors to QPIC’s higher share of income. KARO, which has always suffered from lower profitability, is showing enhanced performance as the aromatics markets pick up, and we expect it to further improve.”
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. 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), National Petroleum Services Company (NAPESCO), as well as United Oil Projects (UOP).
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$ 31.8 billion as at 30 June 2015. 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 further information, please visit: www.qpic-kw.com or contact:
Investment Department/Corporate Communication & Relations