Kuwait-based Qurain Petrochemicals Industries Company (QPIC) has registered a net loss of KD1.9 million ($6.85 million) for 2010 compared to KD7.09 million ($24.8 million) net profit in the same period the previous year.

The company announced the 2010 results at the ordinary and extraordinary general meetings held at the kuwait Ministry of Commerce and Industry building.

The meetings agreed the board recommendation to decrease the company's capital by KD80,742, which represents the value of unsubscribed shares. This brings the company's capital to KD109.9 from KD110 million.

QPIC reported to shareholders net earnings of (1.74) fils per share for the year ending December 31, 2010.

Announcing the results, Sheikh Mubarak Abdullah Al-Sabah, QPIC chairman said, 'The company recorded profits from all its investments except Kuwait Paraxylene Company (KPPC), whose plant is managed by Equate.'

He pointed out that the losses suffered by KPPC were operating losses due to the high cost of raw materials from Kuwait National Petroleum Company (KNPC) and a decrease in the world price of Paraxylene.

These losses have been further compounded by the cost of the initial capital investment for setting up the Paraxylene plant, he noted.

KPPC is 20 per cent owned by QPIC through its ownership of the Kuwait Aromatics Company, 40 per cent by Kuwait Petroleum Company (KPC) through its interest in Petrochemical Industries Company (PIC), and 40 per cent owned by KNPC. 

QPIC’s total assets as of December 31, 2010 were valued at KD193.2 million, which represents a slight increase of KD1.87 million on the previous year, noted Sheikh Mubarak.
 
During the current year, QPIC’s book value also increased 7 per cent, reaching 174 fils per share. This compares to 163 fils in the previous year and is due to the rise in value of investments available for sale, he added.

On the QPIC future plans, Sheikh Mubarak said: “The year ahead seems to be promising for the petrochemical industry in the region due to lower production costs. QPIC intends to make new investments in 2011 in line with the company’s strategic objectives of sustained growth and returns to its shareholders.”
 
QPIC's major projects include a 20 per cent initial investment in aromatics and styrene ventures, which produces 400,000 tons of benzene annually, 820,000 tons of paraxylene, and 450,000 tons of styrene.

The company is also engaged in additional investments through its 6 per cent stake in Equate, producing 800,000 tons of ethylene, 830,000 tons of polyethylene, and 400,000 tons of ethylene glycol.

Finally, the company’s investment in the Kuwait Olefins Company, through its 6 per cent stake, operates a 850,000 tons of ethylene cracker annually, and produces 600,000 tons of ethylene glycol annually.

According to him, the execution of Algerian Methanol Project was postponed due to circumstances beyond the company’s management control.

'QPIC is still waiting for the decision of Sonatrach, the Algerian government-owned company, to specify its position regarding a one-million ton methanol production contract that will cost between $700 and $800 million, he added.

The general meetings approved all agenda items and decided not to distribute any dividends for the 2010 financial year.-TradeArabia News Service