Tribune news network
Doha
Mesaieed Petrochemical Holding Company (“MPHC”), on Tuesday announced a net profit of QR194 million for the three-month period ended 31 March 2024, representing a decline of 28% compared to 1Q-23. This decline in profitability was mainly linked to decline in selling prices by 17% resulting in lower revenue by 2% to reach QR707 million.
Drop in revenue was mainly linked to the decrease noted in average blended product prices, which declined by 17% compared to 1Q-23, translating into a negative price variance of QR80 million in MPHC’s current period net earnings as compared to the same period of last year.
Sales volumes increased by 18% versus 1Q-23, mainly driven by higher sales volumes reported by the chlor-alkali segment partially offset by lower sales volumes reported by the petrochemicals segment. Positive movement in sales volumes translated into an increase of QR67 million in MPHC’s 1Q-24 net earnings versus the same period of last year.
EBITDA for the current period amounted to QR305 million with a decline of 18% versus 1Q-23, mainly due to lower revenue. EBITDA margins for 1Q-24 reached 43% versus 52% achieved during 1Q-23 due to decline in selling prices. MPHC’s bottom-line profitability declined by 17% versus 4Q-23, mainly due to lower revenue where a decline of 13% was noted on a quarter-on-quarter basis.
Drop in revenue was mainly linked to lower selling prices by 6%, and lower sales volumes which declined by 8% versus 4Q-23, as production volumes declined in Petrochemicals segment due to maintenance shutdown during the quarter.
Selling prices also dropped marginally by 6%, mainly on the backdrop of relatively lower supply-demand dynamics translating to a negative price variance of QR35 million.
Liquidity remained robust with cash and bank balances standing at QR2.7 billion as of 31 March 2024. Decline in cash and bank balances was mainly due to dividend payment for the financial year 2023, being partially offset by positive cash flow generation during 1Q-24. Total assets as of 31 March 2024 amounted to QR16.6 billion and total equity amounted to QR16.2 billion.
