QPIC announces KD 1.56 million (US$ 5.17 million) in net profits for the first Quarter ended 30 June 2021 of the financial year 2021/2022
QPIC announces KD 1.56 million (US$ 5.17 million) in net profits
for the first Quarter ended 30 June 2021 of the financial year 2021/2022
Kuwait City, 3 August 2021: QPIC - Qurain Petrochemical Industries Company K.S.C.P. - announced a net profit of KD 1.56 million (US$ 5.17 million) for the first quarter ended 30 June 2021 of the financial year 2021/2022, compared to KD 2.35 million (US$ 7.79 million) for the same period last year. Earnings per share (EPS) for the quarter stood at 1.52 fils (US$ 5.04 cents) compared to 2.30 fils (US$ 7.62 cents) during the same period last year.
Consolidated gross profit amounted to KD 15.46 million (US$ 51.24 million) compared to KD 19.95 million (US$ 66.13 million) reported for the same period last year owing to the decline in revenue from our subsidiaries.
Total consolidated assets stood KD 756.47 million (US$ 2.51 billion) as at 30 June 2021, compared to KD 759.39 million (US$ 2.52 billion) reported at the end of the previous financial year as at 31 March 2021.
Commenting on the results, QPIC’s Chairman, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, said:
“Despite the healthy recovery of oil and petrochemical product prices, the negative impact from the global spread of COVID-19 continues to pressure the performance of all non-oil related companies within the QPIC group, resulting in the lower announced in comparison to the previous year, given that the severity of the pandemic and lockdowns affected QPIC’s investments for the most part during the second half of 2020. However, we are confident that QPIC’s balanced and diversified investment portfolio will reduce the impact of this economic turbulence on our future performance and will enable QPIC to withstand the different 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 A. Ali, said:
“The lower announced results can be mainly attributed to the weaker business environment that came about as a result of the effects of the global pandemic on all of our non-oil related companies. Saudia Dairy & Foodstuff Co. (SADAFCO) in particular had witnessed a drop in its profitability on the back of increased competition and irrational discounts within Saudi Arabia, in addition to the negative impact from increasing the Value-Added Tax (VAT) from 5% to 15% during July of last year. On a positive note though, it’s worth mentioning that petrochemical markets have done really well since the beginning of 2021; especially in EQUATE Group products portfolio. We look forward to enhance our future performance with the support of our well-diversified group companies and the anticipated recovery on business environment as COVID-19 restrictions are gradually lifted.”
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 Petrochemical Industries Co. (PIC), to increase the participation of the private sector within the Petrochemicals sector and create local industries that add value to the national economy. QPIC was publicly listed on Kuwait stock market in 2007.
QPIC focuses on investing within the industrial space, but has a strategic focus on Petrochemicals. QPIC’s well-diversified portfolio of companies is distributed consist of three main segments: Petrochemicals, Oilfield services, Food Processing and Other industries engaged in logistics, power rentals and basic materials manufacturing.
QPIC’s Petrochemicals presence combines stakes in some of Kuwait’s largest petrochemical complexes such as Equate Petrochemicals Group in the Olefins side, represented by Equate Petrochemicals Co. (EQUATE), The Kuwait Olefins Co. (TKOC) and MEGlobal, in addition to the Aromatics business through QPIC’s associate Kuwait Aromatics Co. (KARO) which combines controlling stakes in Kuwait Paraxylene Production Co. (KPPC) and The Kuwait Styrene Co. (TKSC).
QPIC’s Oilfield Services are represented by two subsidiaries: National Petroleum Services Co. (NAPESCO) and United Oil Projects (UOP). UOP presence in the oilfield services is represented by its two associate companies, Al-Khorayef United Holding Co. (Al-Khorayef) and United Precision Drilling Co. (UPDC).
QPIC’s Food Processing sector comprises of our subsidiary Saudia Dairy & Foodstuff Co. (SADAFCO), which is the leading brand in long-life milk segment in Saudi Arabia, in addition to having other food products. SADAFCO also has presence in international markets through its Polish subsidiary, Mlekoma.
Other industries include Jassim Transport & Stevedoring Co. (JTC), which is active in the logistics, port management, power generation & equipment leasing sectors, and Insha’a Holding, a company that manufactures basic materials connected with building and construction.
QPIC is part of Kuwait Projects Co. (Holding) group of companies (KIPCO Group).
KIPCO Group is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 33.4 billion as of 31 December 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 Group has also interests in the education and medical sectors.