KUWAIT CITY: Qurain Petrochemical Industries Company (QPIC) has announced a net loss of KD 5,622,953 (US $ 20,373,018) for the year ended Dec 31, 2008. The company's performance was affected by the current global financial crisis which impacted the performance of regional stock markets leading to substantial decrease in the company's portfolio which includes listed chemical and petrochemical companies' shares in local stock markets. In order to avoid such volatile situation of financial markets in future, the company has reclassified its investment portfolio to mitigate the impact of such market instability. The company enjoy an excellent financial position because it did not borrow any amounts and has no liability towards banks. Also the company is classified as emerging company because all its projects are new and in the launching stage. The company is highly expected to gain excellent profits from these projects on the long and medium term.
The expected results of the company's stake in Equate which is 6% during the year, will be high and will be reflected on the company's results during 2009. Investment in associates has gone up by 74% due to the additional investment of KD 15.0 million in the share capital of Kuwait Aromatics Company and KD 1.4 million in Algerian Methanol Spa (ALMET). Increasing investment in associates, as compared to December 2007 is in accordance with the company plan to diversify its activities, increase its core investments, and finally increase shareholders' equity upon getting positive results from these investments in the future.
Following the investment of substantial funds, QPIC's total investment assets increased from KD 109.7 million at the end of 2007 to KD 137.4 million at the end of 2008. The Chairman of QPIC, Sheikh Mubarak Abdullah Al-Mubarak Al- Sabah, commented:
" The company is continuously monitoring its core investments in these troubled and volatile times to lower risk factors and obtain the required return for the shareholders. More information will be provided during the company's Annual General Meeting."
© Arab Times 2009
