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FY 2016 Financial Highlights:
● Net Profit: USD 107 million, up by 11% from the FY 2015
Kuwait - The Kuwait Styrene Company (TKSC), the first and only producer of styrene monomer in Kuwait, announced today a net profit of USD 107 million for the fiscal year ending December 31, 2016, compared with USD 97 million during 2015, an 11% increase in net profit.
TKSC CEO Adel Al-Munifi, said, “Despite global market fluctuations and a scheduled plant turnaround, our double-digit growth rate in 2016 proves that TKSC has a flexible structure that enables it to weather through global market challenges and deliver a high quality product that continues to see increased demand from our solid customer base in the Europe and Asia.”
Al-Munifi added, “Financially, the company refinanced its loans in a record timeframe and successfully undertook a USD 280 million loan from a local bank to reinforce activities that improve the company's competitiveness at an international level.”
Al-Munifi said, “The company’s increase in profit was driven by several factors such as higher market prices in comparison to feedstock costs due to healthier oil prices, austerity measure leading to lower fixed cost, optimized logistics cost and Six Sigma programs. With a strong financial position and an operational strategy to increase our competitiveness, TKSC is set to continue its growth, supported by recovery in prices and cost-optimization programs.”
The global styrene monomer (SM) market saw a slow recovery in prices at the end of 2016, which is expected to continue during 2017. Prices have already been on an uptrend in January 2017 by reaching $1300/MT, which was $300/MT higher than January 2016.
Al-Munifi concluded, “TKSC has consistently maintained world-class operational standards, sustaining profitability as one of the most successful joint ventures established in Kuwait, and adding significant value to the local economy while immensely contributing to the global industry. We thank EQUATE Petrochemical Company, Kuwait Paraxylene Production Company (KPPC) and The Kuwait Olefins Company (TKOC), public institutions and customers for their continued support.”
The Kuwait Styrene Company (TKSC) was established in 2004 as an international joint venture between the Kuwait Aromatics Company (KARO) and the Dow Chemical Company (Dow). TKSC is part of Greater EQUATE, operated by EQUATE Petrochemical Company, which also includes Kuwait Paraxylene Production Company (KPPC) and The Kuwait Olefins Company (TKOC). The firms operate under one integrated umbrella in Kuwait.
© Press Release 2017
