Significant increase in share of income from subsidiaries and associates

Investments in associates increased by 10% due to higher share of income from KARO & NAPESCO.

QPIC is actively seeking new local and regional investment opportunities that complement its investments' structure

Kuwait City, 27 October 2016

QPIC - Qurain Petrochemical Industries Company - announced a net profit of KD 10.49 million (US$ 34.74 million) for the first half of the financial year 2016/2017. This compares favorably to a net profit of KD 6.61 million (US$ 21.89 million) posted during the same period last year, representing an increase of 59 per cent.

Earnings per share (EPS) for the half year stood at 10.08 fils (US$ 33.38 cents), compared to 6.31 fils (US$ 20.89 cents) during the same period last year.

Consolidated gross profit increased by 14% to reach KD 32.11 million (US$ 106.32 million) from KD 28.07 million (US$ 92.95 million) reported for the same period last year, owing to reduction in the cost of sales during the period.

Investments in associate companies increased by 10 per cent or KD 8.3 million (US$ 27.48 million) during the said period, due to increase in share of profits from Kuwait Aromatics Co. (KARO) and National Petroleum Services Co. (NAPESCO). Total assets stood at KD 531.9 million (US$ 1.76 billion) as at 30 September 2016, compared to KD 521.5 million (US$ 1.72 billion) on 31 March 2016.

Commenting on the results, QPIC’s Chairman, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, said:

“The results achieved showcase the soundness and diversification of QPIC’s investments, which can withstand the current economic circumstances that the region has encountered given the instability of the market and the geopolitical scene. QPIC continues to actively seek new local and regional investment opportunities, in partnership with well reputed international players in the field.”

On his part, QPIC’s Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali, said:

“The profits we have achieved are in line with our expectations and the recently adopted policy to diversify QPIC’s main sources of income, being that all of our subsidiaries and associates performed positively during the quarter and showed stable growth. The Saudia Dairy & Foodstuff Co. (SADAFCO) and KARO, the two main contributors in achieving the positive results, in addition to the improved performance from the remaining associates and subsidiaries, and we expect their performance to further enhance.”

-Ends-

Established in 2004, Qurain Petrochemical Industries Company (QPIC) is a public shareholding company with a total capital of one hundred and ten million Kuwaiti dinars distributed over a billion and one hundred million shares. Our Investments portfolio combines stakes of Kuwait’s largest petrochemical projects such as Equate Petrochemicals, The Kuwait Olefins Company (TKOC) and Kuwait Aromatics (KARO). In addition to our significant stakes being a majority shareholder in Saudia Dairy & Foodstuff Company (SADAFCO), National Petroleum Services Company (NAPESCO), as well as United Oil Projects (UOP). QPIC financial year starts on April 1st, and ends in March 31st of every year.

QPIC is part of Kuwait Projects Company (KIPCO) group - one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 32 billion as at 31 December 2015. The Group has significant ownership interests in over 60 companies operating across 24 countries. The group’s main business sectors are financial services, media, real estate and manufacturing. Through its core companies, subsidiaries and affiliates, KIPCO also has interests in the education and medical sectors.

For further information, please visit: www.qpic-kw.com or contact: 
Abdul-Hameed Malhas           
Assistant Manager, 
Investment Department and Corporate Communications & Relations Unit
Tel:      +965-2294-3232          -           Ext. 2012
Email:  Malhas@qpic-kw.com             

Nabil F. Fayed
Administrative Affairs Manager
Tel: +965 2294-3232               -           Ext. 2041
Email: Nabil@qpic-kw.com

© Press Release 2016