Qurain Petchem posts $32m net profit
Kuwait, February 2, 2014
Qurain Petrochemical Industries Company has registered a KD9 million ($32 million) net profit for the nine month period ending December 31, 2013 compared to KD4 million the year before.
This reflected an increase of 143 per cent over the previous year.
Announcing the results, QPIC said the total assets stood at KD336 million ($1.18 billion) as of December 31 compared to KD299 million on March 31, 2013, which represents an increase by 12 per cent.
The investments in associate companies have jumped by 155 per cent or KD76 million during the same period, which is attributed to the 29 per cent stake acquisition in Saudia Dairy & Foodstuff Company (Sadafco), in addition to the increase in share of profits from Kuwait Aromatics Company (Karo), said the company in its statement.
Earnings per share (EPS) for the quarter stood at 8.41 fils compared to 3.36 fils per share for the same period last year.
Chairman Sheikh Mubarak Abdullah Al Mubarak Al Sabah said Qurain was actively seeking new local and regional investments opportunities particularly across the petrochemical industries as well as within the energy & industry sectors, in collaboration with world leading investment banks and consultants.”
Vice chairman and CEO Sadoun Ali said, “Karo was the main driver in exceeding our expectations during the quarter, resulting in achieving a higher share of income due to favorable market conditions, in addition to our share of income from our new associate, Sadafco.”
On the Aromatics project (KPPC), Ali said despite the improved performance during the year owing to favourable market conditions, profits are expected to diminish due to the anticipated reversal in market trends.
QPIC, he stated, was exploring ways to improve the performance of the project to align it with similar projects around the world.
"This is being done in co-ordination with Karo’s management and our project partners, Petrochemical Industries Company (PIC) and Kuwait National Petroleum Company (KNPC), which resulted in noticeable but not significant improvements in the project’s net returns," he said.
"However, QPIC is awaiting Kuwait Petroleum Company’s (KPC’s) effective intervention to resolve pending issues to prevent a significant impact on the project’s economics,” he added.
Kuwait-based QPIC is engaged in several projects including Equate, Olefins II, Aromatics and Styrene in Kuwait, and is actively investigating local, regional, and international opportunities as part of its long-term strategy.-TradeArabia News Service