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Tribune News Network
Doha
Mesaieed Petrochemical Holding Company (MPHC) on Thursday reported a 15 percent fall in its 2019 net profit of QR1.2 billion, amid declining selling prices and declining sales volumes.
The Board of Directors has proposed a dividend of QR0.9 billion, equivalent to a payout of QR0.07per share and representing a payout ratio of 74 percent.
The region’s premier diversified petrochemical conglomerate said it has “delivered on its core objectives of operational excellence and cost optimization”.
Global economic uncertainty, slowing GDP growth and trade conflicts weighed on demand for MPHC products, with a rising surplus capacity, which created an imbalance in supply-demand dynamics and pressured the group’s product prices.
During the year, selling prices declined by 15 percent and sales volumes fell by 5 percent as compared to the last year and both translated into a decrease in revenue of 19 percent. The production drop of 3 percent resulted from maintenance shutdowns. These shutdowns are part of the group’s commitment to HSE, ensuring plant life, quality and reliability standards, which ultimately improvesand maintains Group operational efficiency.
During the year, the group also received an income tax exemption, with effect from January 1, 2019, where its share of profit in all of the group’s joint ventures will be fully exempt from income tax liability.
In the fourth quarter, the group reported a net profit of QR698 million, which was 270 percent up from QR189 million profit reported in the third quarter of 2019. The increase was mainly due to the adjustment for income tax exemption, which was effective retrospectively from January 1, 2019, for the full year. However, selling prices, group revenue and profits reflected the downward trend against the backdrop of challenging macroeconomic conditions.
Liquidity remained robust throughout the year and the group’s balance sheet strengthened. Cash held by MHPC (including proportionate share of joint ventures) at the end of December 31, 2019, reached QR1.8 billion and total assets stood at QR15.5 billion, compared to QR15.3billion at the end of 2018, after accounting for dividend pay-outs for the financial year 2018.
MPHC Chairman Ahmad Saif al Sulaiti said, “In a difficult market, we successfully navigated challenging macroeconomic headwinds to increase operational reliability and efficiency, while laying the groundwork for future growth. Entering 2020, we remain focused on our five-year business strategy to strengthen MPHC’s market position, while driving cost optimization and generating improved shareholder value.”
Doha
Mesaieed Petrochemical Holding Company (MPHC) on Thursday reported a 15 percent fall in its 2019 net profit of QR1.2 billion, amid declining selling prices and declining sales volumes.
The Board of Directors has proposed a dividend of QR0.9 billion, equivalent to a payout of QR0.07per share and representing a payout ratio of 74 percent.
The region’s premier diversified petrochemical conglomerate said it has “delivered on its core objectives of operational excellence and cost optimization”.
Global economic uncertainty, slowing GDP growth and trade conflicts weighed on demand for MPHC products, with a rising surplus capacity, which created an imbalance in supply-demand dynamics and pressured the group’s product prices.
During the year, selling prices declined by 15 percent and sales volumes fell by 5 percent as compared to the last year and both translated into a decrease in revenue of 19 percent. The production drop of 3 percent resulted from maintenance shutdowns. These shutdowns are part of the group’s commitment to HSE, ensuring plant life, quality and reliability standards, which ultimately improvesand maintains Group operational efficiency.
During the year, the group also received an income tax exemption, with effect from January 1, 2019, where its share of profit in all of the group’s joint ventures will be fully exempt from income tax liability.
In the fourth quarter, the group reported a net profit of QR698 million, which was 270 percent up from QR189 million profit reported in the third quarter of 2019. The increase was mainly due to the adjustment for income tax exemption, which was effective retrospectively from January 1, 2019, for the full year. However, selling prices, group revenue and profits reflected the downward trend against the backdrop of challenging macroeconomic conditions.
Liquidity remained robust throughout the year and the group’s balance sheet strengthened. Cash held by MHPC (including proportionate share of joint ventures) at the end of December 31, 2019, reached QR1.8 billion and total assets stood at QR15.5 billion, compared to QR15.3billion at the end of 2018, after accounting for dividend pay-outs for the financial year 2018.
MPHC Chairman Ahmad Saif al Sulaiti said, “In a difficult market, we successfully navigated challenging macroeconomic headwinds to increase operational reliability and efficiency, while laying the groundwork for future growth. Entering 2020, we remain focused on our five-year business strategy to strengthen MPHC’s market position, while driving cost optimization and generating improved shareholder value.”
