Kuwait: Qurain Petrochemicals Industries Company (QPIC) today announced a net loss of KD 1,901,883 for the year ended 31 December 2010. This compares to a profit of KD 7,098,268 Million in the same period of 2009. Net earnings per share is (1.74) fils compared with 6.47 fils for the same period last year.
Sheikh Mubarak Abduallah Al-Sabah, Chairman of QPIC said that the company recorded profits from all its investments except from the Kuwait Paraxylene Company (KPPC), which has impacted negatively on the company's profits this year. He stated that the reasons for the losses were unforeseen in the company's business plan and resulted from the performance of Kuwait Paraxylene Company (KPPC)'s paraxylene plant. KPPC is 20% owned by QPIC through its ownership of the Kuwait Aromatics Company, 40% owned by Kuwait Petroleum Company (KPC) through its interest in Petrochemical Industries Company (PIC) and 40% owned by Kuwait National Petroleum Company (KNPC). The plant is managed by EQUATE.
Sheikh Mubarak added that the operating losses suffered by KPPC were mainly due to the high cost of raw materials from KNPC and a decrease in world price of paraxylene. This was compounded by the cost of the initial capital investment for setting up the plant.
QPIC received KD7.41 million dividends from its investment in EQUATE and the Kuwait Olefins Company for 2010.
Sheikh Mubarak confirmed that KPPC's management is evaluating the current position in relation to KPPC and will submit its suggestions towards a resolution in coordination with all parties involved.
Sheikh Mubarak said: "Overall, our income was in-line with expectations and we have seen our shareholder equity increase by KD 12.56 million. QPIC also continues to enjoy a solid cash position that will allow it to opportunities in the sector as and when they become apparent."
QPIC's total assets as of 31 December 2010 were valued at KD 193.22 million, in comparison to KD 191.35 million in the same period in the previous year.
Amongst the highest revenue generators for QPIC is its 6% stake of EQUATE. QPIC, along with companies that include EQUATE, have a mandate of raising standards in Kuwait's petrochemical industry to world class levels.
-Ends-
Qurain Petrochemical Industries Company (QPIC) was established by Amiri Decree in 2004 with a share capital of Kuwaiti Dinars 110 million. The establishment of QPIC by the Petrochemical Industries Company (PIC) followed Kuwait Petroleum Company's (KPC) strategic initiative to encourage more private sector engagement in major petrochemical projects in Kuwait.
QPIC is focused on investing directly and indirectly in companies producing, trading and storing chemical and petrochemical products and related by-products, including but not limited to benzene, Para-Xylene, Light Naphtha, Hydrogen, Light Ends, Heavy aromatics, Styrene, Ethylene glycol, Ethane, and Methanol.
Headquartered in Kuwait, QPIC is engaged in several projects including EQUATE, Olefins II, Aromatics and Styrene in Kuwait, and Algerian Methanol, and is actively investigating local, regional, and international opportunities as part of its long-term strategy. United Industries Company, a KIPCO Group company, is a major shareholder in QPIC.
© Press Release 2011
