By Sachin Kumar
DOHA: Mesaieed Petrochemical Holding Company (MPHC) saved around QR132m last year through its cost saving and optimisation efforts. The company, which has interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products, have plans to optimise the costs further in the forthcoming year, said Ahmad Saif Al Sulaiti, Chairman, Board of Directors, MPHC yesterday addressing the third Annual General Assembly Meeting.
“Realising the expected impact of falling oil prices on the group’s product prices and its profitability in particular, a committee was established in the previous year to review the cost across all MPHC group companies with an objective of identifying potential cost savings and optimisation across entire value chain including review operational assets and processes without compromising the quality, health, safety and environment,” said Al Sulaiti. “These efforts have resulted in approximate savings in costs of QR132m during the year. The group companies have plans to optimise the costs further in the forthcoming year,” he said.
He said MPHC group possess a number of strengths that could well be guarded against the unfavourable economic conditions. The group has set a primary strategy of maximising shareholder value by capitalising on its three group companies’ numerous competitive strengths across its value chain. Firstly, the group benefits from access to competitively priced feedstock under long-term supply agreement. Secondly it enjoys a number of synergies through integrated production and export operations. MPHC through its marketing agent, Muntajat has access to a diverse base of worldwide clients, and most importantly the group’s all production facilities are located within Qatar. In addition to this the group companies all have well-established positions in the petrochemical segment, with the companies being established between 1997 and 2005, recognised operational track records and the proven ability to continue to generate strong operating cash flows.
“The Board of Directors of MPHC are confident that the group can build on these core strengths to mitigate the risks and challenges thrown away by the current economic meltdown,” said Al Sulaiti. “With these strengths, the Board of Directors of MPHC are confident that the group is well-positioned to withstand the challenging economic times ahead,” he added.
Khalid Mohammed Al Subaey, Managing Director, MPHC said the year 2015 posed certain challenges on the product price front. Following the decline in crude oil prices during 2015, the product prices of the company declined during the year. This affected not only MPHC but many companies around the globe. “We worked shoulder to shoulder with the group companies to ensure that the results for the year is not significantly affected on factors within our control. In this regard, we initiated cost-optimisation measures amongst the group companies,” said Al Subaey. “With the continuous co-ordination with and co-operation from the group companies, we were able to optimise costs and pose good results for 2015. I am pleased to announce that the cyclical turnaround in Q-Chem II was successfully completed during the 1st Quarter of 2015,” he added.
The Peninsula
