QPIC announces KD 2.35 million (US$ 7.62 million) in net profits for the 1st Quarter ended 30 June 2020
QPIC announces KD 2.35 million (US$ 7.62 million) in net profits
for the 1st Quarter ended 30 June 2020
Kuwait City, 12 August 2020: QPIC - Qurain Petrochemical Industries Company K.S.C.P. - announced a net profit of KD 2.35 million (US$ 7.62 million) for the for the first quarter (the three months ended 30 June 2020), compared to KD 4.76 million (US$ 15.44 million) for the same period last year.
Earnings per share (EPS) for the quarter stood at 2.30 fils (US$ 7.46 cents) compared to 4.61 fils (US$ 14.95 cents) during the same period last year.
Consolidated gross profit increased 23 per cent to reach KD 19.95 million (US$ 64.71 million) from KD 16.20 million (US$ 52.53 million) reported for the same period last year owing to the consolidation of Jassim Transport & Stevedoring Co. (JTC), as well as the improved performance of Saudia Dairy & Foodstuff Co. (SADAFCO).
Total consolidated assets marginally increased to KD 783.01 million (US$ 2.54 billion) as at 30 June 2020, compared to KD 779.4 million (US$ 2.52 billion) reported at the end of the previous financial year (31 March 2020).
Commenting on the results, QPIC’s Chairman, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, said:
“The lower profits reported are mainly attributed to the negative impact of persistent weaker oil and petrochemical markets, coupled with the global spread of COVID-19 that has significantly affected the petrochemical sector which accounts to 43% of QPIC’s investment portfolio. However, we are confident that QPIC’s balanced and diversified investment portfolio will lead to a reduction in the impact of this dual shock on our future performance and will enable us to withstand the global challenges we are witnessing. In the meantime, we continue to look for 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:
“Despite the sharp drop in the petrochemical markets, which mainly impacted the profitability of our associate company, Kuwait Aromatics (KARO), all of our non-oil investments have over-achieved their performance compared to the same period last year. SADAFCO in particular registered around 22 per cent increase in net profit compared to the same period last year. That is in addition to the new value addition from our latest acquisition, JTC. We look forward to maintaining the same level of performance during 2020. 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.”
Notes to Editors:
Qurain Petrochemical Industries Co. (QPIC) was established in 2004 with a total capital of KD 110 million distributed over 1.1 billion shares. The company was founded with a clear direction from the government of Kuwait represented by the Petrochemical Industries Co. (PIC) in order to engage the private sector to participate within the Oil and Gas sectors and create local industries that add value to our national economy, and it was listed in 2007.
QPIC’s well-diversified portfolio of companies is distributed over three main segments: Petrochemicals, Industrial services & Manufacturing. QPIC’s petrochemical presence combines stakes in some of Kuwait’s largest petrochemical complexes such as Equate Petrochemicals Group, represented by Equate Petrochemicals Co. (EQUATE), The Kuwait Olefins Co. (TKOC) and MEGlobal, in addition to QPIC associate Kuwait Aromatics Company (KARO).
QPIC’s industrial services sector comprises of Oilfield services through its two subsidiaries, National Petroleum Services Co. (NAPESCO), and United Oil Projects (UOP) as well as Logistics, equipment leasing and port management through its recently acquired subsidiary, Jassim Transport & Stevedoring Co. (JTC). QPIC’s manufacturing sector comprise of Food and Basic Materials manufacturing through its two subsidiaries; Saudia Dairy & Foodstuff Co. (SADAFCO), the leading brand in long-life milk segment in Saudi Arabia, and Insha’a holding in the basic materials manufacturing.
QPIC is part of Kuwait Projects Co. (Holding) group of companies. KIPCO Group is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 34 billion as of 31 December 2019. 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. QPIC financial year starts on April 1st, and ends in March 31st of every year.