Qurain net profit plunges

The company hopes Kuwait will counter future challenges with new technologies and shale gas exploration

August 2014

Qurain Petrochemical Industries Company (QPIC) has announced a net profit of KD0.93 million ($3.3 million) for the first quarter of the 2014/2015 financial year that ended June 30, 2014. It constituted a decrease of 77.6 per cent from the net profit posted during the same period last year.

The profit drop was mainly due to the poor performance of Kuwait Paraxylene Production Co (KPPC). Earnings per share for the quarter stood at 0.88 fils (3.1 cents) compared to an EPS of 3.89 fils in the previous financial year.

Sheikh Mubarak Abdullah Al Mubarak Al Sabah, QPIC chairman, said: “The main two contributors in achieving these results were the higher share of income received from Saudia Dairy and Foodstuff Co (Sadafco), in addition to the realised gains on the partial sale of QPIC’s portfolio shares. Variance in comparison with last year’s performance is mainly attributed to Kuwait Aromatics Company’s lower share of income driven by KPPC’s poor profitability.”

On QPIC’s plans, he added: “We are looking with hope at the Kuwaiti government’s initiatives to develop the local oil and gas sector with the intention of accelerating the development of the local industry. This will serve to support this vital sector so that it may counter any future challenges with new global technologies and shale gas explorations, considering that QPIC is actively seeking new partnerships with reputed entities and major financial consulting agencies to select viable investment opportunities across the GCC and the Middle East region.”

Commenting on the results, QPIC’s vice chairman and chief executive officer, Sadoun Ali, said: “Sales revenues at KD1.0 million have increased by 7.5 per cent or KD0.07 million over the same period last year. Total assets stood at KD358.8 million as at June 30, 2014 compared with KD364.3 million on March 31, 2014. Investments in associate companies increased by 0.2 per cent or KD0.26 million during the said period owing to the net increase in the share of profits from Sadafco and National Petroleum Services Co (Napesco). “

He added: “Following KPPC’s impressive performance during the previous year due to its products reaching their cyclical peak prices, the anticipated downturn in its products’ prices have started affecting its performance and profitability which significantly dropped during the year. QPIC remains waiting for Kuwait Petroleum Corporation’s intervention in order to resolve the pending issues and restructure the company to prevent the project from faltering.”

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