MPHC declares 2018 first quarter net profit of QR 357 million

• Profits significantly up from previous year by 68%.
• Performance exceeds the group’s budget by over 60%.
• Strong liquidity position with closing cash of circa QR 1 billion as at 31 March 2018.
• Tax refund of QR 34 million booked for the first quarter of 2018.

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, announced its financial results for the first quarter ended 31 March 2018 with net profit of QR 357 million.

Financial Results

MPHC reported net profit of QR 357 million for the quarter ended 31  March 2018 with earnings per share of QR 0.28, outperforming the net profit of QR 212 million and earnings per share of QR 0.17 during the corresponding period of the previous year by QR 145 million or 68%. The increase in profit was driven by improved sales volumes, as the previous year witnessed planned maintenance shutdowns in some of the group companies’ plants. Improved selling prices by circa 5% further contributed to the surge in earnings.

As compared to the previous quarter, the net profit was up by QR 74 million or 21% due to improved sales volumes and selling prices, in addition to reduction in operating costs. These financial results exceeded the group’s budget expectations by over 60%.

The groups’ profit for the quarter was also aided by the recognition of a tax refund of approximately QR 34 million for the quarter. 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 three months of operations was a robust QR 1 billion as at 31 March 2018.  The total assets at 31 March, 2018 was QR 14.3 billion, compared to QR 14.8 billion as at 31 December 2017.

-Ends-

For more information about this press release, e-mail mphc@qp.com.qa  or visit www.mphc.com.qa .
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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

Telephone Number  (974) 4013-2080

Fax Number              (974) 4013-9750

© Press Release 2018