Qurain Petrochemical Industries Company (QPIC) has announced a net profit of KD6.58million ($21.47million) for the first half of 2020-21, compared to KD9.69 million ($31.61 million) for the same period last year.
Earnings per share (EPS) for the first half year stood at 6.44fils ($21.01cents) compared to 9.38fils ($30.60 cents) during the same period last year.
Consolidated gross profit increased 11 per cent to reach KD39.14 million ($127.70 million) from KD35.26 million ($115.04 million) reported for the same period last year owing to the consolidation of Jassim Transport & Stevedoring Co. (JTC), as well as the improved performance of Saudia Dairy & Foodstuff Co. (SADAFCO).
As at 30 September 2020, total consolidated assets stood at KD768.25 million ($2.51 billion), compared to KD779.42 million ($2.54 billion) reported at the end of the previous financial year (31 March 2020), showing a marginal decrease mainly due to dividend payout.
QPIC’s Chairman Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, said: “The lower profits reported are mainly attributed to the negative impact of persistent weaker oil and petrochemical markets, coupled with the global spread of Covid-19 that has significantly affected the petrochemical sector which accounts to around 40 per cent of QPIC’s investment portfolio.
“However, we are confident that QPIC’s balanced and diversified investment portfolio will lead to a reduction in the impact of this dual shock on our future performance and will enable us to withstand the global challenges we are witnessing. In the meantime, we continue to look for new opportunities that will enhance the balance of our portfolio and maximize our shareholders’ interests.”
QPIC’s Vice Chairman and Chief Executive Officer Sadoun Ali, said: “Despite the decline in the announced profits for the first half of the fiscal year which were mainly attributed to the deteriorating petrochemical markets along with the negative impact of Covid19 pandemic on global markets, it’s worth noting that the second quarter results witnessed healthy improvements on the performance and profitability of all of QPIC’s subsidiaries and associate companies.”
“Furthermore, all of QPIC non-oil investments have maintained their positive momentum in the first half of the financial year and overall exceeded the previous year’s performance. SADAFCO in particular registered around 14 per cent increase in net profits compared to the same period last year,” he added.
“We look forward to maintain healthy levels of performance during 2020 with the support of our well-balanced investment portfolio, and that will mainly rely on two factors; the improvement of oil and petrochemical prices and the duration of the onset of the Covid-19 pandemic, impacting the speed of recovery of the regional and global markets.” – TradeArabia News Service