Qurain Petchem suffers $5.6m loss
Kuwait , November 10, 2010
Kuwait-based Qurain Petrochemicals Industries Company (QPIC) has registered a net loss of KD1.58 million ($5.64 million) for the first nine months compared to KD7.79 million in the same period last year.
The company's net earning per share (EPS) for the nine-month period ended September 30 fell to 1.44 fils compared to 7.10 fils for the same period last year.
Commenting on the results, QPIC chairman Sheikh Mubarak Abduallah Al-Sabah said the loss was mainly due to the poor performance of Kuwait Paraxylene Company (KPPC)’s paraxylene plant.
KPPC is 20 per cent owned by QPIC through its ownership of the Kuwait Aromatics Company, 40 per cent owned by Kuwait Petroleum Company (KPC) through its interest in Petrochemical Industries Company (PIC), and 40 per cent owned by Kuwait National Petroleum Company (KNPC).
Sheikh Mubarak pointed out that the operating losses suffered by KPPC were mainly due to the high cost of raw materials from KNPC and a slump in the global price of paraxylene.
This was compounded by the cost of the initial capital investment for setting up the plant, he added. The plant is being managed by Equate.
Sheikh Mubarak said the KPPC’s management is evaluating the situation at the company and would soon submit its suggestions towards a resolution in co-ordination with all parties involved.
“Overall, our income was in-line with expectations and we have seen our shareholder equity increase by 20 per cent (KD30 million) compared to the same period last year. QPIC also enjoys a solid cash position that will allow it to opportunities in the sector as and when they become apparent,” Sheikh Mubarak added.
QPIC said its overall assets remained in line with the previous quarter and stood at KD181.5 million, with a book value of 161 fils per share.
Amongst the highest revenue generators for QPIC was its six per cent stake of Equate. QPIC, along with companies that include Equate, have a mandate of transforming the petrochemical industry in Kuwait into a world class one, the company added.-TradeArabia News Service