Kuwait-based Qurain Petrochemical Industries Company (QPIC) has recorded a 52 per cent jump in its net profit for the first quarter which soared to KD22.61 million ($79.3 million) from KD14.85 million last year.
This represented an increase of KD7.75 million in its net profit for the financial year ended March 31, 2013, said a statement from the company.
The earnings per share (EPS) for the year stood at 20.75 fils compared to an EPS of 13.55 fils per share for last year.
"QPIC had reported a net profit of KD 33.02 million for the financial year ended 31 March 2012. The financial year comprised 15 months due to shifting the beginning of the financial year to April instead of January," it stated.
QPIC's total assets stood at KD290.71 million as at March 31, 2013 compared to KD256.09 million last year, representing an increase of 14 pert cent or KD 34.63 million, said the Kuwaiti petrochemical giant.
Investments in associate companies increased 9 per cent or KD3.86 million during the said financial year, it added.
Commenting on the results, chairman Sheikh Mubarak Abdullah Al Mubarak Al Sabah said, "Our net profits exceeded expectations during the final quarter of the financial year, standing at KD18.94 million. This is due to the distribution of greater profits from Equate Petrochemicals and The Kuwait Olefins Company. This is in addition to QPIC’s share of profits from Kuwait Aromatics (Karo) and other investments."
He revealed that QPIC’s board of directors have recommended the distribution of cash dividends at 10 per cent of the company’s paid up capital, or 10 fils per share, subject to the approval of relevant authorities and QPIC’s Annual General.
Commenting on QPIC's investments, vice chairman and CEO Sadoun Ali said, “QPIC is exploring ways to improve the performance of the aromatics project (paraxylene) and to bring it to the level of similar projects around the world. This is being done in co-ordination with KARO’s management and our project partners, Petrochemical Industries Company and Kuwait National Petroleum Company."
According to him, QPIC is waiting for Kuwait Petroleum Corporation’s intervention in order to resolve pending issues to prevent the project from faltering.
On its future plans, Ali 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."
The company chief highlighted the importance of developing the local industries along with the private sector especially at the downstream level for the added value.
"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," he added.
Established in 2004 with a share capital of KD110 million, QPIC is focused on investing directly and indirectly in companies producing, trading and storing chemical and petrochemical products and related by-products, including Benzene, Heavy aromatics, Ethylene Glycol, Ethane, and Methanol.
The company is also engaged in major projects in Kuwait including Equate, Olefins II, Aromatics and Styrene and is actively studying local, regional, and international opportunities as part of its long-term strategy. United Industries Company, a Kipco Group company, is a major shareholder in QPIC.-TradeArabia News Service