13 May 2015
Consolidated operational revenue up 111% due to new acquisitions

Extraordinary unrealized gains of KD12.91 million (US$42.94 million) due to reclassification of SADAFCO as a subsidiary

Kuwait - QPIC - Qurain Petrochemical Industries Company - has announced a net profit of KD31.35 million (US$104.23 million) for the financial year ended 31 March, 2015.This compares favorably to a net profit of KD27.46 (US$91.30) million made last year, representing an increase of KD 3.89 million (US$12.9 million) or 14%.

Earnings per share (EPS) for the year stood at 29.80 fils (US$9.91 cents) compared to an EPS of 25.94 fils (US$ 8.63 cents) per share for the year before.

QPIC Board of Directors is recommending the distribution of a cash dividend of 10% (10 fils per share), subject to approval by the company's General Assembly and regulatory authorities.

Consolidated operational revenue has increased by 111% to KD67.71 million (US$225.14 million) compared to KD32.03 million (US$106.49 million). Total consolidated assets increased to KD527.97 million (US$1,756 million) compared to KD364.26 million (US$1,211 million) the previous year, mainly owing to the new acquisitions made by QPIC in SADAFCO - Saudia Dairy & Foodstuff Company - during the second quarter of the financial year. Following the acquisition, QPIC's share in SADAFCO reached 40%, reclassifying the dairy company as a subsidiary instead of an associate.

Profits for QPIC's fourth quarter ended 31 March 2015 at KD16.43 million (US$54.63 million) were 11% lower in comparison to KD18.54 million (US$61.64 million) during the same period last year, affected by the lower dividends received from EQUATE Petrochemicals & The Kuwait Olefins Company (TKOC) that were impacted by the international drop in the prices of oil and petrochemicals.

Despite lower dividends received from our investments, results for the year significantly exceeded expectations due to the extraordinary unrealized gains of KD12.91 million (US$42.94 million) owing to the reclassification of SADAFCO.

Commenting on the results, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, QPIC's Chairman, said:
"The results achieved reflect QPIC's sound investment and diversification strategies that have enabled the company to record excellent performance levels, despite the sharp decline in oil prices during 2014 and further to hitting its price cyclical peaks in the previous financial year. QPIC actively seeks new and viable local and regional investment opportunities with well-reputed entities."

On his part, QPIC's Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali said:
"With the exception of Kuwait Aromatics Company (KARO), all of QPIC investmentshave achieved good results during the financial year 2014-15, especially in Equate & TKOC. QPIC's other investments in oil services, chemicals and food industry sectors are expected to be positively impacted by the drop in oil prices mainly due to cheaper raw materials and shipping costs, in addition to business expansion."

Commenting on KARO, he said:
"KARO continues to sufferfrom the poor profitability levels of Kuwait Paraxylene Production Company (KPPC), driven by the lower market prices and weaker demand for oil derivatives. However, we expect the project to witness improvements that will be reflected in the results of the upcoming year, as the sector shows signs of improvements in cooperation with our project partners and Kuwait Petroleum Corporation."

-Ends-

About QPIC
Established in 2004, Qurain Petrochemical Industries Company (QPIC) is a holding company with a total capital of one hundred and ten million Kuwaiti dinars distributed over a billion and one hundred million shares distributed to over 450 thousand shareholders across Kuwait, and focuses on investing within the Energy & Industrial sectors.

The company was founded with a clear direction from the government of Kuwait represented by the Petrochemical Industries Company (PIC) in order to engage the private sector to participate within the Oil&Gas sector and create local industries that adds value to our national economy.

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), United Oil Projects (UOP), as well as National Petroleum Services Company (NAPESCO).

QPIC is a subsidiary of Kuwait Projects Company (KIPCO) - which is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of US$ 31.3 billion as at 31March 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  
Corporate Communication & Relation Officer
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 2015