QPIC announces 42% net profit increase for the year ended 31 March 2017 to KD 34.94 million (US$ 114.56 million)
- QPIC BoD recommends distributing 11% cash dividends
- 51 % Year-on-Year growth in share of income from associates due to improved performance from KARO & NAPESCO
- Total assets reached KD 609 million, 17% over last year as a result of the revaluation gains of AFS investments and the new acquisition in NAPESCO & Inshaa Holding Co.
Kuwait City, 03 May 2017: QPIC - Qurain Petrochemical Industries Company K.S.C.P. - announced a net profit of KD 34.94 million (US$ 114.56 million) for the year ended 31 March 2017, representing 42 per cent increase over last year’s KD 24.71 (US$ 81.02 million).
Earnings per share (EPS) for the financial year amounted to 33.58 fils (US$ 110.10 cents) compared to 23.63 fils (US$ 77.47 cents) reported the previous year.
QPIC’s Board of Directors is recommending the distribution of a cash dividend of 11 per cent (11 fils per share), subject to approval by the company's General Assembly and regulatory authorities.
Consolidated gross profit increased 8 per cent to reach KD 61.89 million (US$ 202.92 million) from KD 57.34 million (US$ 188.00 million) reported last year, owing to the reduction in cost of sales during the year.
Total assets stood at KD 608.77 million (US$ 2.00 billion) as at 31 March 2017, compared to KD 521.47 million (US$ 1.72 billion) on 31 March 2016, representing a significant increase of 17 per cent. This is mainly attributed to the revaluation gains of our stake at EQUATE Petrochemicals & The Kuwait Olefins Company (TKOC) and the new acquisitions in National Petroleum Services Company (NAPESCO) and Inshaa Holding. Investments in associate companies increased by 5 per cent or KD 4.21 million (US$ 13.81 million) to reach KD 85.82 million (US$ 281.38 million) during the year, owing to the enhanced share of profits from associates.
Commenting on the results, QPIC’s Chairman, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, said:
“The achieved results affirm the ability of QPIC’s business model to withstand market volatilities, allowing us to deliver consistent solid performance and results that meet our shareholders’ expectations. Furthermore, QPIC is actively seeking new local and regional investment opportunities, in partnership with well reputed international players within the field.”
QPIC’s Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali, said:
“The year-end results were in line with our expectations and long-term outlook that initially led us to start diversifying our investments. Despite the deteriorating performance of the oil and gas sector, and the lower dividends received from Equate & TKOC over the past few years, QPIC has maintained its profitability levels and has further enhanced this through the excellent performance of its subsidiaries and associates, especially Kuwait Aromatics (KARO).”
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), United Oil Projects (UOP) as well as Inshaa Holding Company. 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$ 32.7 billion as at 31 December 2016. 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.