Qurain Petrochemical Industries Company (QPIC) has announced a net profit of KD0.93 million (US$3.3 million)for the first quarter of the 2014/2015 financial year ended 30 June 2014.
This represents a decrease of77.6% or KD 3.2 million (US$11.4 million) from the KD 4.15 (US$14.7) million net profit posted during the same period last year mainly due to the poor performance from Kuwait Paraxylene Production Co. (KPPC). Earnings per share (EPS) for the quarter stood at 0.88 fils (US$3.1cents) compared to an EPS of 3.89fils (US$13.8 cents) in the previous financial year.
Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, QPIC’s Chairman, said “The main two contributors in achieving these results were the higher share of income received from Saudia Dairy and Foodstuff Co. (SADAFCO), in addition to the realized gains on partial sale of QPIC’s portfolio shares. Variance in comparison with last year’s performance is mainly attributed to Kuwait Aromatics Company’s lower share of income driven by KPPC’s poor profitability.”
On QPIC’s future plans, he added: “We are looking with hope at the Kuwaiti government’s initiatives to develop the local oil and gas sector with the intention of accelerating the development of the local industry. This will serve to support this vital sector so that it may counter any future challenges with new global technologies and shale gas explorations, being that QPIC is actively seeking new partnerships with reputed entities and major financial consulting agencies to select viable investment opportunities across the GCC and the Middle East Region.”
Commenting on these results, QPIC’s Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali said: “Sales revenues at KD1.0 (US$3.54) million have increased by 7.5% or KD 0.07million (US$0.25 million) over the same period last year. Total assets stood at KD 358.8million (US$1,271 million)as at 30June 2014 compared to KD 364.3million (US$1,290 million) on 31 March 2014. Investments in associate companies increased by 0.2% or KD 0.26 million (US$0.92 million) during the said period owing to the net increase in share of profits from SADAFCO and National Petroleum Services Co. (Napesco).“
Commenting on KPPC, He added: “Following KPPC’s impressive performance during the previous year due to its products reaching their cyclical peak prices, the anticipated downturn in its products’ prices have started effecting its performance and profitability which significantly dropped during the year. QPIC remains waiting for Kuwait Petroleum Corporation’s intervention in order to resolve the pending issues and restructure the company to prevent the project from faltering.”
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