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Published Date : 31 Jan 2021
QPIC consolidated gross profits increase by 4% to reach KD 57.04 million (US$ 187.79 million) in the nine months period ended 31 December 2020 of the financial year 2020/2021

QPIC consolidated gross profits increase by 4% to reach KD 57.04 million (US$ 187.79 million) in the nine months period ended 31 December 2020 of the financial year 2020/2021

  • Healthy operational levels from all of QPIC subsidiaries and associate companies, especially in SADAFCO.

 

Kuwait City, 31 January 2021:  QPIC - Qurain Petrochemical Industries Company K.S.C.P. - announced a net profit of KD 7.61 million (US$ 25.05 million) for the nine months period ended 31 December 2020 of the financial year 2020/2021, compared to KD 14.29 million (US$ 47.05 million) for the same period last year. Earnings per share (EPS) for the three quarters stood at 7.45 fils (US$ 24.53 cents) compared to 13.88 fils (US$ 45.70 cents) during the same period last year.

Consolidated gross profit increased by 4% per cent to reach KD 57.04 million (US$ 187.79 million) from KD 54.71 million (US$ 180.12 million) reported for the same period last year owing to the improved performance from Saudia Dairy & Foodstuff Co. (SADAFCO), as well as Jassim Transport & Stevedoring Co. (JTC) consolidation since beginning of the financial year compared to the previous year.

As at 31 December 2020, total consolidated assets stood at KD 757.21 million (US$ 2.49 billion), compared to KD 779.42 million (US$ 2.57 billion) reported at the end of the previous financial year (31 March 2020), showing a marginal decrease mainly due to dividend payout.

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

“The lower reported profits are mainly attributed to the negative impact from deteriorating petrochemical markets, coupled with the global spread of the pandemic that has significantly affected products’ supply and demand, which in return impacted QPIC profitability, given our high concentration within the petrochemicals’ sector. Nonetheless, we remain confident that QPIC’s balanced and diversified portfolio is capable of withstanding these challenges by lessening the impact of this dual crisis on our future results. We remain continuously reviewing new investment opportunities that will enhance the balance of our portfolio and maximize the interests of our shareholders.”

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

“The achieved results were in line with our expectations despite the continued deterioration of global petrochemicals’ markets which was further impacted by the currently witnessed spread of the pandemic. However, it is worth noting that all our non-oil subsidiaries have performed very well and exceeded last year’s results, especially in SADAFCO. We remain looking forward to maintaining our healthy performance levels during 2021 with the support of our balanced portfolio, and that will mainly rely on two factors; 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:

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$ 33 billion as of 30 September 2020. 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.

For further information, please visit: www.qpic-kw.com or contact:

Abdulhameed Malhas       

Investment & Communication Manager

Tel:             +965-2294-3232              -             Ext. 201

Nabil F. Fayed

Administrative Affairs Manager

Tel:             +965 2294-3232              -             Ext. 2041