Qurain Petrochemical Industries announces 67% net profit increase for first three quarters of FY2014/2015
Consolidated operational income up 491% in Q3 Kuwait City, 10 February 2015: QPIC - Qurain Petrochemical Industries Company - has announced a net profit of KD 14.9 million (US$ 50.8 million) for the nine months ended 31 December, 2014, an increase of 67 per cent over the KD 8.9 million (US$ 30.3 million) profit reported for the same period last year. Earnings per share (EPS) for the same period stood at 14.17 fils (US$ 48.36 cents) compared to 8.41 fils (US$ 28.70 cents) for the same period last year. Commenting on the results, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, QPIC’s Chairman, said: “Consolidated operational income for the quarter is at KD 10.7 million (US$36.4 million), an increase of 491% per cent compared to the same period last year, mainly owing to new acquisitions made by the company and particularly in SADAFCO - Saudia Dairy & Foodstuff Company. This is despite the significantly lower profitability from Kuwait Aromatics Company (KARO)”. He added: “Profit for the quarter ended in 31 December, 2014, amounted to KD 0.15 million (US$0.51 million), enabling profit for the nine months period to reach KD 14.9 million (US$50.8 million), of which KD 12.9 million (US$44.0 million) was recorded as extraordinary unrealized gains following the reclassification of SADAFCO as a subsidiary instead of an associate, post the further acquisition in its capital during the last quarter, and in compliance with IFRS standards”. On QPIC’s plans, he said: “We are looking with hope at the Kuwaiti government’s initiatives to develop the local oil and gas sector with the intention of accelerating the development of the local industry. This will serve to support this vital sector so that it may counter any future challenges with new global technologies and shale gas explorations, being that QPIC is actively seeking new partnerships with reputed entities and major financial consulting agencies to select viable investment opportunities across the GCC and the Middle East Region.” Commenting on the results, QPIC’s Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali said: "Total consolidated revenues for the first nine months stood at KD 86.5 million (US$ 295.3 million), over five times the KD 13.8 million (US$ 47.0 million) made during the same period last year. Total consolidated assets as of 31 December, 2014, has increased to KD 501.6 million (US$ 1,712 million) compared to KD 364.3 million (US$1,243 million) on 31 March, 2014, mainly owing to consolidating SADAFCO as a subsidiary. “ Regarding QPIC Investments, he said: “The anticipated drop in petrochemical products’ prices following reaching its cyclical peaks in 2013 has occurred, along with the global decline in the oil market, which expected to impact QPIC Petrochemical investments, and especially in KARO, as QPIC share of income from KARO has decreased by 94% in comparison to the same period last year. However, QPIC remains confident that Kuwait Petroleum Corporation will intervene in order restructure the company and resolve pending issues in order to prevent the project from faltering. Contrary, QPIC other investments in oil services, chemicals and food industries sectors are expected to be positively impacted by the drop in oil prices mainly due to the cheaper raw materials and shipping costs, in addition to business expansions.” -END-
Notes to Editors:
Established in 2004, Qurain Petrochemical Industries Company (QPIC) is a holding company with a total capital of one hundred and ten million Kuwaiti dinars distributed over a billion and one hundred million shares distributed to over 450 thousand shareholders across Kuwait, and focuses on investing within the Energy & Industrial sectors.
The company was founded with a clear direction from the government of Kuwait represented by the Petrochemical Industries Company (PIC) in order to engage the private sector to participate within the Oil&Gas sector and create local industries that adds value to our national economy.
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), United Oil Projects (UOP), as well as National Petroleum Services Company (NAPESCO).
QPIC is a subsidiary of Kuwait Projects Company (KIPCO) - which is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 32 billion as at 30 September 2014. 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: