DOHA: Mesaieed Petrochemical Holding Company (MPHC), a subsidiary of Qatar Petroleum and one of the region’s premier diversified petrochemical conglomerates, recorded a net profit of QR1.4bn for nine months ended September 30, 2014. MPHC closed the nine months with the liquidity position across the group remaining strong at QR2.2bn.
The group’s third quarter net profit was QR477.5m, an increase of QR41.8m versus the second quarter representing an increase of 9.6 percent.
The group continued to maintain strong EBITDA margins which were aided by resilient key product prices, supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements with Qatar Petroleum and the recognition of a tax refund from the Public Revenues and Tax Department. Cash across all group companies as at September 30, 2014 remained at QR2.2bn indicating the group’s strong cash position. The utilisation rates during the third quarter remained strong.
The group consists of six companies, with three of them directly held: MPHC holds 49 percent of the issued share capital of each of Qatar Chemical Company Limited QSC (Q-Chem) and Qatar Chemical Company II Limited QSC (“Q-Chem II”), and 55.2 percent of the issued share capital of Qatar Vinyl Company Limited QSC (QVC). Both Q-Chem and Q-Chem II each have a single, wholly-owned subsidiary, while Q-Chem II also has an effective ownership of 53.85 percent of Ras Laffan Olefins Cracker Company Limited.
Q-Chem reported a revenue of QR1.2bn for the nine-months period ended September 30, 2014, while third quarter revenue was QR385.4m, a decrease of QR13.2m, or 3.3 percent, due to a drop in polyolefin sales volumes by 7.3 percent versus the prior quarter.
Revenue reported by Q-Chem II for the nine months was QR1.6 bn, while third quarter revenue was QR539.7m, an increase of QR45.9m, or 9.3 percent, due to an increase in the ethylene sales volumes versus the prior quarter
Total assets of the combined Q-Chem and Q-Chem II business unit as on September 30, 2014 were QR6.7bn, and total debt was QR1.6bn. The entire debt balance was due by Q-Chem II, while the combined companies’ cash realisation ratio was over 100 percent.
QVC registered revenue of QR591.5m, while the third quarter revenue of QR243.3m was up by QR69.5m, or 40 percent, from the previous quarter since all the plants were fully operational during the third quarter. Results for the nine months were impacted by planned shut-downs of the company’s EDC, VCM and caustic soda facilities. Net profit recorded during the third quarter was QR23.7m, an increase of QR5.4m from the previous quarter while the net profit during the nine months period was QR 42.0m.The Peninsula
