QPIC recurring net profits increase 34% to KD 24.7m (US$ 81.8m) for the year ended 31 March 2016
- QPIC BoD recommends distributing 10% cash dividends
- Significant increase in share of income from subsidiaries and associates, particularly from KARO & SADAFCO
Kuwait City,10 May 2016: QPIC - Qurain Petrochemical Industries Company - has announced a net profit of KD 24.7 million (US$ 81.8 million) for the year ended 31 March 2016. This represents an increase of 34% or KD 6.3 million (US$ 20.8 million) over the recurring KD 18.4 million (US$60.9 million) net income posted the previous year. This is after excluding KD 12.9 million (US$42.7 million) in extraordinary unrealized gainsresulting from the reclassification of SADAFCO – Saudi Dairy & Foodstuff Co. - from an associate investment to a subsidiary during the previous year.
Earnings per share (EPS) for the year amounted to 23.63 fils (US$ 78.2 cents) compared to 29.80 fils (US$ 98.6 cents) the previous year.
QPIC’s Board of Directors is recommending the distribution of a cash dividend of 10% (10 fils per share), subject to approval by the company's General Assembly and regulatory authorities.
Revenue from consolidated sales increased 48% to reach KD 162.1 million (US$ 536.5 million) from KD 109.2 million (US$ 361.4 million) reported the previous year.
Total assets stood at KD 521.5 million (US$ 1.73 billion) as at 31 March 2016, from KD 527.9 million (US$ 1.75 billion) on 31 March 2015, representing a slight decrease of 1% mainly owing to the decrease in fair valuation of unquoted financial assets available for sale.
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 geopolitical and economic circumstances that the region is encountering. QPIC continues to actively seek 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:
“The year-end results were in line with our expectations and the recently adopted policy to diversify QPIC’s main sources of income. Despite the deteriorating performance of the oil and gas sector, and the lower dividends received from Equate Petrochemical & The Kuwait Olefins Company over the past two years, QPIC has maintained and enhanced its profitability levels through its subsidiaries and associates. In particular, SADAFCO and Kuwait Aromatics (KARO) were the main contributors to QPIC’s higher share of income, and we expect them to continue to deliver positively in the future.”
Notes to Editors:
Established in 2004, Qurain Petrochemical Industries Company (QPIC) is a public shareholding 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 financial year starts on April 1st, and ends in March 31st of every year.
QPIC is part of Kuwait Projects Company (KIPCO) group - one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 32 billion as at 31 December 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.