Kuwait-based Qurain Petrochemicals Industries Company (QPIC) said it has posted strong financial results for the first quarter ended March 31, registering a net profit of KD33 million ($118 million).

Announcing the results at the AGM on Monday, chairman Sheikh Mubarak Abdullah Al-Sabah said, 'QPIC registered net earnings of 30.14 fils per share for the 15-month period ended in March 31, 2012, equalling to an increase of KD34.9 million in returns.'

“The major contributors to the net profit were dividends received from Equate Petrochemical Company and Kuwait Olefins Company (TKOC) of KD30.9 million and realized gains on the sale of available for sale investments of KD3.69 million,” he stated.

Sheikh Mubarak pointed out that the results were in line with QPIC expectations. The total assets of the company on March 31 stood at KD256.09 million, up 33 per cent compared to KD193.22 million the previous quarter.

According to him, the investments in associates had gone up by 9 per cent (or KD3.44 million) during the period and available for sale investments had gone up significantly by 18 per cent or KD 25.16 million owing to the increase in the fair value of Equate and TKOC investments.

On the Paraxylene project, Sheikh Mubarak said, “The project is still suffering from the continuous losses caused by the third party agreements with companies related to Kuwait Petroleum Corporation (KPC). QPIC is still awaiting for Kuwait Petroleum Corporation to play a proactive role in fixing the anomalies in these agreements since October 2011.”

The QPIC chief said the company was looking at continuing the development of its PTA-PET project in collaboration with world leading consulting agencies in the field of petrochemicals, in order to satisfy the project’s requirements.

On its future plans, Sheikh Mubarak said, “QPIC is actively seeking new partnerships with reputed entities and major financial consulting agencies to pick viable and reliable investments across the GCC and the Middle East Region, in collaboration with world leading investment banks and consultants.”

QPIC’s ordinary general meeting approved all the agenda items, including the distribution of 15 fils per share dividend for the 15 months period ended March 31.

New CEO

Also at the meeting, Sadoun Abdulla Ali was elected the company's new vice chairman and CEO. He was previously managing director and CEO of Kamco – a position he had held since 2010.

Welcoming Ali into the group, Sheikh Mubarak said, 'His broad range of entrepreneurial skills and experience within the oil sector will be a huge advantage for us as we develop our business.'

'His excellent management skills and investment experience will also play a major part in our development as we seek further opportunities in the petrochemical sector in Kuwait and elsewhere in the region,' he remarked.

On his new role, Ali said, “I am very pleased to be joining QPIC at this stage of its evolution into one of Kuwait’s major petrochemical companies. It is in a very healthy financial position, with huge potential for development and so I believe this is an excellent opportunity to join a vibrant and exciting company.” -TradeArabia News Service