QPIC Kuwait Increased Net Profit by 67% in Q1-3 of FY2014/2015

Kuwait City, Kuwait – 11 February 2015:

QPIC – Qurain Petrochemical Industries Company – has announced a net profit of KD 14.9 million (US$ 50.8 million) for the nine months ended 31 December, 2014, an increase of 67 per cent over the KD 8.9 million (US$ 30.3 million) profit reported for the same period last year.

Earnings per share (EPS) for the same period stood at 14.17 fils (US$ 48.36 cents) compared to 8.41 fils (US$ 28.70 cents) for the same period last year.

Commenting on the results, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, QPIC’s Chairman, said:
“Consolidated operational income for the quarter is at KD 10.7 million (US$36.4 million), an increase of 491% per cent compared to the same period last year, mainly owing to new acquisitions made by the company and particularly in SADAFCO – Saudia Dairy & Foodstuff Company. This is despite the significantly lower profitability from Kuwait Aromatics Company (KARO).”

He added:
“Profit for the quarter ended in 31 December, 2014, amounted to KD 0.15 million (US$0.51 million), enabling profit for the nine months period to reach KD 14.9 million (US$50.8 million), of which KD 12.9 million (US$44.0 million) was recorded as extraordinary unrealized gains following the reclassification of SADAFCO as a subsidiary instead of an associate, post the further acquisition in its capital during the last quarter, and in compliance with IFRS standards.”

On QPIC’s plans, he said:
“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 the results, QPIC’s Vice Chairman and Chief Executive Officer, Mr. Sadoun Ali said:
“Total consolidated revenues for the first nine months stood at KD 86.5 million (US$ 295.3 million), over five times the KD 13.8 million (US$ 47.0 million) made during the same period last year. Total consolidated assets as of 31 December, 2014, has increased to KD 501.6 million (US$ 1,712 million) compared to KD 364.3 million (US$1,243 million) on 31 March, 2014, mainly owing to consolidating SADAFCO as a subsidiary.”

Regarding QPIC Investments, he said:
“The anticipated drop in petrochemical products’ prices following reaching its cyclical peaks in 2013 has occurred, along with the global decline in the oil market, which expected to impact QPIC Petrochemical investments, and especially in KARO, as QPIC share of income from KARO has decreased by 94% in comparison to the same period last year. However, QPIC remains confident that Kuwait Petroleum Corporation will intervene in order restructure the company and resolve pending issues in order to prevent the project from faltering. Contrary, QPIC other investments in oil services, chemicals and food industries sectors are expected to be positively impacted by the drop in oil prices mainly due to the cheaper raw materials and shipping costs, in addition to business expansions.”