DOHA: Mesaieed Petrochemical Holding Company (MPHC), a subsidiary of Qatar Petroleum (QP), and one of the region’s premier diversified petrochemical conglomerates with interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products, announced its financial results for the nine months period ended September 30, 2016, with a net profit of QR716m. The third quarter net profit is a decline in of QR70m or 9 percent compared to a net profit of QR786m posted during the same period in 2015.
The year-on-year decrease was due to the decline in selling prices despite improved sales volumes in the midst of a challenging market. This reduction was partially offset by the cost savings arising from the cost optimisation initiatives undertaken by the group.
The groups’ profit was also aided by a tax refund of approximately QR65m booked during the period. The group continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements. These contractual arrangements are an important value driver for the group profitability in a challenging market condition.
The closing cash position after the first nine months of operations and after distribution of previous years’ dividend of QR851m, was a robust QR922m as at September 30, 2016. The total assets at September 30, 2016 was QR14.1bn, compared to QR14.3bn as at 31 December 2015.
The group continued to operate in a highly volatile and competitive environment. The group’s operations were hindered by the volatility in selling prices. The product prices declined by 11 percent compared to the same period of the previous year due to the oil price plunge and challenging market conditions, MPHC stated yesterday.
The financial and operating results were commendable despite the fluctuations in prices, and exceeded the budget expectations primarily due to the increase in sales volumes. With the successful completion of the periodic turnaround in some of the plants in the previous year, the production and sales volumes increased during the year, the group said.
