QPIC announces KD 3.35 million (US$ 11.09 million) net profit for the half year ended 30 September 2021
EQUATE Group net profits increased to US$ 543 million versus US$ 124 million in the first half of 2021
Acquisition of 29.50% equity stake in Advanced Technology Co. (ATC) further enhances QPIC group balanced and diversified business model to withstand different market challenges
Kuwait City, 2 November 2021: QPIC - Qurain Petrochemical Industries Company K.S.C.P. - announced today a net profit of KD 3.35 million (US$ 11.09 million) for the first half of the financial year 2021-22 ended 30 September 2021, compared to KD 6.58 million (US$ 21.79 million) for the same period last year.
Earnings per share (EPS) for the first half year stood at 3.27 fils (US$ 10.83 cents) compared to 6.44 fils (US$ 21.32 cents) during the same period last year.
Consolidated gross profit during the period amounted to KD 31.46 million (US$ 104.17 million) compared to KD 39.14 million (US$ 129.60 million) reported for the same period last year owing to the decline in revenues from our subsidiaries. Total consolidated assets as at 30 September 2021 stood at KD 772.05 million (US$ 2.56 billion) compared to KD 759.39 million (US$ 2.51 billion) reported at the end of the previous financial year (31 March 2021), showing a marginal increase mainly due to acquisition of Advanced Technology Company (ATC).
Commenting on the results, QPIC’s Chairman, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, said:
“Despite the drop in year-on-year variation in profitability and overall performance of QPIC group companies owing to the onset global health and economic crises, we have started to see signs of gradual recovery across the different sectors our group companies operate in. We remain confident that QPIC’s balanced and diversified investment portfolio will reduce the impact of this economical turbulence on our future performance and will enable QPIC to withstand the different global challenges we are witnessing, especially with the addition of our recent investment in the healthcare. In the meantime, we continue to look for new opportunities that will further enhance the balance of our portfolio and maximize our shareholders’ interests.”
QPIC’s Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali, said:
“Our ability to deliver the positive performance despite the overall weakness of the business environment and challenges that negatively impacted the performance of most of our group companies is a reflection of our sound business model and diversification strategy. On a positive note, the Petrochemical markets have witnessed a strong recovery since the beginning of 2021. EQUATE Group in particular, was able to achieve for the first half of 2021 ended 30/06/2021 a net profit amounting to US$ 543 million compared to US$ 124 million during the same period last year, enabled by the excellent recovery of its core products. Furthermore, we have also acquired during the announced quarter an equity stake amounting to 29.50% in ATC for a total consideration of KD 22.18 million (US$ 73.45 million). ATC is a leading end-to-end total healthcare solutions provider that is specialized in providing and maintenance of medical equipment in Kuwait. Finally, we look forward to enhance our future performance with the support of our well diversified group companies and the gradual relief of the onset pandemic and challenges.”
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 generation 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 has also recently acquired a 29.50% equity stake in Advanced Technology Company (ATC), which is a leading end-to-end total healthcare solutions provider that is specialized in providing and maintenance of medical equipment in Kuwait.
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$ 33.2 billion as of 30 June 2021. 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.