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Published Date : 10 Jun 2020
QPIC announces a net profit of KD 28.23 million (US$ 91.37 million) for the financial year ended 31 March 2020

QPIC announces a net profit of KD 28.23 million (US$ 91.37 million) for the financial year ended 31 March 2020

  • BOD recommends distribution of cash dividends of 16 fils per share
  • Total assets increased 7% to KD 779.42 million (US$ 2.52 billion)
  • Actively seeking new investment opportunities in the region to maintain QPIC’s balanced investment portfolio in the energy and industrial sectors

 

Kuwait City, 10 June 2020: Qurain Petrochemical Industries Company K.S.C.P. (QPIC) announced its financial results for the year ended 31 March 2020 with a net income of KD 28.23 million (US$ 91.37 million), compared to KD 45.33 million (US$ 146.72 million) for the previous year. Earnings per share (EPS) for the year came to 27.45 fils (US$ 88.85 cents) versus 43.64 fils (US$ 141.25 cents) last year.

Consolidated gross profit increased 20 per cent to reach KD 75.90 million (US$ 245.67 million) from KD 63.48 million (US$ 205.46 million) reported for the same period last year, owing to the increase in sales revenues during the period and the positive impact of the consolidation of JTC.

Total assets stood at KD 779.42 million (US$ 2.52 billion) as at 31 March 2020, compared to KD 731.13 million (US$ 2.37 billion) on 31 March 2019, representing a 7 percent increase, due to the recent acquisition of Jassim Transport & Stevedoring Company (JTC).

QPIC’s Board of Directors (BoD) is recommending the distribution of a cash dividend of 16 per cent (16 fils per share), subject to approval by the company's General Assembly and regulatory authorities.

Commenting on the results, QPIC’s Chairman, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, said:

“The lower announced results mainly attributed to the sharp drop witnessed in petrochemical markets and product prices during the fiscal year from the exceptional peaks it reached the previous year and especially with having around 43 percent exposure to petrochemicals within our investment portfolio. However, it’s worth mentioning that QPIC well-balanced portfolio and the sound diversification strategy we had adopted back in 2012 with the aim of diversifying our sources of income and mitigate risk have significantly contributed to stabilize our results. We aim to continue to seize new opportunities that will enhance the balance of our portfolio and maximize our shareholders’ interests.”

 

QPIC’s Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali, said:

“The results are in line with our expectations. The numbers are supported by our diversified investment portfolio that withstood the sharp drop in the petrochemical markets which was positively offset by the remarkable positive performance of our subsidiary, Saudi Dairy & Foodstuff Company (SADAFCO) that registered around 22 per cent increase in net profits compared to the previous year. This is in addition to the healthy performance of the remainder of QPIC’s balanced portfolio, especially our most recent acquisition of the new subsidiary, JTC. We look forward to maintaining the same level of performance in the year 2021. Our performance in the upcoming financial year will mainly rely on two factors, namely the improvement of oil and petrochemical prices and the duration of the onset of the COVID-19 pandemic, impacting the speed of recovery of the regional and global markets.”

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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$ 34 billion as at 31 December 2018. 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:

Abdul-Hameed Malhas      

Investment, Corporate Communications & Relations Manager

Tel:+965-2294-3232  Ext. 2012

Nabil F. Fayed

Administrative Affairs Manager

Tel: +965 2294-3232   Ext. 2041