Profits surged by 13% on previous year.

Performance significantly exceeds the group's budget.

Robust liquidity position with closing cash of QR 1.1 billion held by the company as at 30 September, 2017 after distribution of previous years' dividends of QR 724 million.

Tax refund of QR 74 million booked for the period ended 30 September 2017.

DOHA, QATAR : Mesaieed Petrochemical Holding Company (“MPHC” or “the group”; QE: MPHC), a subsidiary of Qatar Petroleum and one of the region’s premier diversified petrochemical conglomerates with interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products, reported its financial results for the nine months period ended September 30, 2017, with a net profit of QR 805.9 million.

Financial Results

MPHC posted a net profit of QR 805.9 million for the nine months period ended September 30, 2017 with earnings per share of QR 0.64, surged by 13% on previous year. Improved selling prices coupled with one-off claims received were the main contributors towards improved performance. The financial performance significantly exceeded the group’s budget expectations.

The group’s profit for the period was also aided by recognition of a tax refund of approximately QR 74.3 million for the period. The group continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements. This contracting arrangement is an important value driver for the group’s profitability in a challenging market condition.

The closing cash position after the first nine months of operations and after distribution of previous years’ dividends of QR 724.2 million, was a robust QR 1.1 billion as at September 30, 2017. The total assets at September 30, 2017 was QR 14.5 billion, compared to QR 14.4 billion as at 31 December 2016.

-Ends-

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Disclaimer
The companies in which Mesaieed Petrochemical Holding Company QSC directly and indirectly owns investments are separate entities.  In this press release, “MPHC” and “the group” are sometimes used for convenience in reference to Mesaieed Petrochemical Holding Company QSC.  This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Mesaieed Petrochemical Holding Company QSC.  All statements other than statements of historical fact are deemed to be forward-looking statements, being statements of future expectations that are based on current expectations and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, operations and business performance or events impacting the group to differ materially from those expressed or as may be inferred from these statements.  There are a number of factors that could affect the realisation of these forward-looking statements such as: (a) price fluctuations in crude oil and natural gas, (b) changes in demand or market conditions for the group’s products, (c) loss of market share and industry competition, (d) environmental risks and natural disasters, (e) changes in legislative, fiscal and regulatory conditions, (f) changes in economic and financial market conditions and (g) political risks.  As such, results could differ substantially from those stated, or as may be inferred from the forward-looking statements contained herein.  All forward-looking statements contained in this presentation are made as of the date of this presentation.  Mesaieed Petrochemical Holding Company QSC, its Directors, officers, advisors, contractors and agents shall not be liable in any way for any costs, losses or other detrimental effects resulting or arising from the use of or reliance by any party on any forward-looking statement and / or other material contained herein.  Mesaieed Petrochemical Holding Company QSC, its joint ventures and associated companies are further in no way obliged to update or publish revisions to any forward-looking statement or any other material contained herein which may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reason whatsoever.  Mesaieed Petrochemical Holding Company QSC does not guarantee the accuracy of the historical statements contained herein.

General Notes

Mesaieed Petrochemical Holding Company’s accounting year follows the calendar year.  No adjustment has been made for leap years.  Where applicable, all values refer to Mesaieed Petrochemical Holding Company’s share.  Values expressed in QR billions and percentages have been rounded to 1 decimal point.  All other values have been rounded to the nearest whole number.  Values expressed in US $’s have been translated at the rate of US $1 = QR3.64.

DEFINITIONS

Cash Realisation Ratio: Cash Flow From Operations / Net Profit x 100 • Debt to Equity: (Current Debt + Long-Term Debt) / Equity x 100 • Dividend Yield: Total Cash Dividend / Closing Market Capitalisation x 100 • EDC: Ethylene Dichloride • EPS: Earnings per Share (Net Profit / Number of Ordinary Shares outstanding at the year end) • EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation • Free Cash Flow: Cash Flow From Operations - Total CAPEX • HCL: Hydrochloric Acid • HDPE: High Density Polyethylene • NAO: Normal Alpha Olefins • NaOH: Caustic Soda • MT / PA: Metric Tons Per Annum • Payout Ratio: Total Cash Dividend / Net Profit x 100 • P/E: Price to Earnings (Closing market capitalisation / Net Profit) • Utilisation: Production Volume / Rated Capacity x 100 • VCM: Vinyl Chloride Monomer

ABOUT MPHC

Mesaieed Petrochemical Holding Company Q.S.C. (“MPHC”) was incorporated as a Qatari joint stock company on May 29, 2013 with an agreed effective date for the transfer of Qatar Petroleum’s previous shareholding in the joint ventures of September 1, 2013.  The registered office is located at P.O. Box 3212, Doha, State of Qatar.  The main activity of MPHC is to act as a holding company: (i) Q-Chem is currently owned by MPHC (49%), Chevron Phillips Chemical International Qatar Holdings L.L.C. (“CPCIQH”) (49%) and QP (2%), and has one wholly-owned subsidiary, Q-Chem Distribution Company Limited,(ii) Q-Chem II is currently owned by MPHC (49%), CPCIQH (49%) and QP (2%), and has one wholly-owned subsidiary, Q-Chem II Distribution Company Limited, and an effective ownership interest of 53.85% in a joint venture, Ras Laffan Olefins Company Limited, which supplies ethylene to Q-Chem II; and (iii) QVC, which was incorporated in 1997 as a joint venture, and is currently owned by MPHC (55.2%), Qapco (31.9%) and QP (12.9%).

CONTACT DETAILS
Name                         Mr. Khalid Al-Subaey
Title                           Managing Director
Telephone Number  (974) 4013-2080
Fax Number              (974) 4013-9750

© Press Release 2017