MPHC reports net profit of QR57m in first quarter

The Peninsula – Doha:

Mesaieed Petrochemical Holding Company (MPHC) has reported a net profit of QR57m for the first quarter of this financial year ended March 31 (Q1 2020), showing a decrease of 83 percent compared to the same period last year.

Total revenues reached QR516m (assuming proportionate consolidation), a decrease of 36 percent compared to the same period in 2019. The group recorded an earnings per share (EPS) of QR0.005 for the first quarter compared to QR0.026 for the same period last year.

The group’s financial performance was impacted by the deteriorating global macroeconomic conditions, economic uncertainty, slowing GDP growth and trade conflicts, including COVID-19 and volatile oil prices, which continue to weigh on the demand for MPHC products, resulting in declining selling prices which declined by 18 percent compared to the same period last year.

Ahmad Saif Al Sulaiti, Chairman of the Board of Directors at MHPC, said: “In a difficult market, further affected by the unprecedented dual headwinds of COVID-19 and oil price volatility, we remained resilient and continued to implement our five-year business strategy to strengthen MPHC’s market position, while driving cost optimisation and generating improved shareholder value. In this regard, during this quarter, we successfully implemented planned preventive maintenance shutdowns within the defined budgets, which would ensure our operational excellence prevails.

In response to limit the spread of COVID-19 pandemic, we have established crisis management committees at each operating entity level to ensure safety of employees and business continuity. Our marketing partner is closely monitoring the situation, as the pandemic situation evolves, and acting prudently to minimise the disruptions to the supply chain. Looking ahead, we are in process of implementing new cost optimisation measures on our operating and capital expenditures more critically, across all the joint ventures, which will ensure our resilience and agility to adjust to the continuously evolving market.” 

During the period, the decline in production volumes, amid planned maintenance shutdowns, negatively affected the sales volumes which declined by 22 percent compared to the same period last year, to reach 227 thousand MT.

The decline in selling prices and sale volumes, on a combined basis, contributed to a decrease of QR286m in the net profits for the first quarter compared to the same period last year.

Liquidity remained robust as cash and cash equivalents of MHPC stood at QR1.2bn for the first quarter. Total assets amounted to QR14.8bn for the first quarter compared to QR15.5bn during fourth quarter of 2019.

During the first quarter, the Petrochemicals segment reported a revenue of QR367m, a decrease of 38 percent, compared to the same period last year. Net profit amounted to QR27m, with a decline of 89 percent compared to the same period last year.

Drop in crude prices and the overall challenging macroeconomic environment, negatively affected the selling prices, which declined by 20 percent compared to the same period last year. Sales volumes declined by 23 percent from last year, primarily due to the planned periodic turnaround of Q-Chem II facilities implemented during the quarter. Production dropped by 35 percent due to the periodic planned turnaround, which is necessary to maintain the plant lives and ensure HSE standards.

During the first quarter of 2020, segment revenue declined by 28 percent compared to the same period in 2019, to reach QR149m. The decline in revenue was mainly due to the decrease in sales volumes by 20 percent and selling prices by 10 percent. The decline in sales volumes was attributed to the planned maintenance shutdowns within QVC facilities. During the period, the segment reported a net profit of QR22m, down by 71 percent from previous year, attributable to the overall drop in segment revenue.

Compared to the fourth quarter of 2019, MPHC’s revenue declined by 24 percent, while net profit declined by 88 percent. The selling prices slightly declined by 1 percent, as the impact of COVID-19 and the present oil price crisis is partially felt in the prices. Sales volumes declined by 21 percent mainly due to the decline in production volumes, which declined by 40 percent, due to planned maintenance shutdowns.

MPHC will host an IR earnings call with investors to discuss its first quarter 2020 results, business outlook, and other matters on May 4, 2020, at 1:30pm Doha Time. The IR presentation that accompanies the conference call will be posted on the publications page of MPHC’s website.

source: thepeninsulaqatar

الدوحة – قنا:

أعلنت شركة مسيعيد للبتروكيماويات القابضة اليوم، عن تحقيق صافي أرباح بواقع 57 مليون ريال لفترة الثلاثة أشهر المنتهية في 31 مارس الماضي.

وأشار السيد أحمد سيف السليطي، رئيس مجلس إدارة مسيعيد للبتروكيماويات في تعليق له على الأداء المالي للشركة، إلى أنه رغم الظروف الصعبة في الأسواق والتي تأثرت أيضا بأوضاع مناوئة غير مسبوقة فرضتها جائحة فيروس كورونا وتقلبات أسعار النفط، إلا أن “مسيعيد” حافظت على قوتها وواصلت تنفيذ استراتيجية أعمالها الخمسية لتدعيم مركزها بالسوق وتعزيز برامج ترشيد التكاليف بما يعظم القيمة المضافة للمساهمين.

وفي هذا الإطار، أضاف السليطي أن الشركة نفذت بنجاح خلال هذا الربع عمليات تطفئة مخططا لها لإجراء الصيانة الوقائية وفقا لما هو محدد في الموازنة التقديرية بما تضمن معه المحافظة على تميزها التشغيلي.

ونوه إلى أن الشركة من أجل ضمان الحد من انتشار جائحة /كوفيد-19/، قامت بإنشاء لجان لإدارة الأزمة لدى كل كيان تشغيلي لضمان سلامة الموظفين واستمرارية الأعمال، مضيفا أن وكيل الشركة التسويقي يرصد الوضع عن كثب في ظل تطور أوضاع الجائحة، ويعمل بحذر على الحد من العراقيل أمام سلسلة الإمداد.

كما أوضح أنه استشرافا للمستقبل، فإن الشركة بصدد تنفيذ تدابير جديدة لترشيد التكاليف بصورة أكبر فيما يخص الإنفاق التشغيلي والرأسمالي في كافة المشاريع المشتركة، بما تضمن معه المحافظة على قوتها وقدرتها على التكيف مع الأسواق التي تشهد تطورات مستمرة.

وحققت الشركة صافي أرباح بواقع 57 مليون ريال لفترة الثلاثة أشهر المنتهية في 31 مارس 2020، بانخفاض تبلغ نسبته 83 بالمئة مقارنة بنفس الفترة من العام الماضي، فيما بلغ إجمالي الإيرادات 516 مليون ريال، بانخفاض قدره 36 بالمئة مقارنة بنفس الفترة من العام الماضي.

وقد بلغ العائد على السهم 0.005 ريال لفترة الثلاثة أشهر المنتهية في 31 مارس من العام الحالي ، مقارنة بعائد بلغ 0.026 ريال لنفس الفترة من العام الماضي.