DOHA, QATAR: Mesaieed Petrochemical Holding Company, 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 2019 with net profit of QR 281 million.[the_ad id=”31605″]Mesaieed Petrochemical Holding Company (MPHC) reported net profit of QR 281 million for the quarter ended 31 March 2019 with earnings per share of QR 0.22 (31 March 2018: QR 0.28), down on the corresponding period of the previous year by QR 76 million or 21%. The decrease in profit is primarily due to reduction in sales volumes and selling prices.
The group’s profit was also aided by the recognition of a tax refund of approximately QR 33 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. These contracting arrangements are an important value driver for the group’s profitability in a competitive market environment.
The petrochemical segment’s profit for the quarter as compared to the corresponding period of previous year was impacted primarily by the drop in selling prices. While the production and sales volumes marginally increased by 1%, the selling prices dropped by 12%.
The Chlor-Alkali segment’s profit reduced from previous year primarily due to decrease in sales revenue and other income. Sales revenue was impacted by the decrease in sales volumes by 10% and decrease in selling prices by 14%. Production was marginally lower by 2% from previous year.
The closing cash position after the first three months of operations was a robust QR 1.3 billion as at 31 March 2019. The total assets at 31 March, 2019 was QR 14.6 billion, compared to QR 15.3 billion as at 31 December 2018.