Qurain Petrochemical Industries Company (QPIC) has registered a net profit of KD27.5 million ($97.3 million) for the first quarter, up 24 per cent over KD22.2 million last year.

Announcing the results, QPIC said its total assets stood at KD364.3 million as of March 31, 2014 compared to KD299 last year, thus representing an increase of 22 per cent.

The investments in associate companies increased 169 per cent to $295.8 million during the financial year primarily due to new investments in Saudia Dairy & Foodstuff Company (Sadafco), as well as National Petroleum Services Company (Napesco).

The earnings per share (EPS) for the year stood at 25.94 fils compared to an EPS of 20.34 fils in the previous financial year.

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 KD18.5 million. This is due to the higher dividend distribution from Equate Petrochemicals and The Kuwait Olefins Company, in addition to QPIC’s share of profits from Kuwait Aromatics Company (KARO) and the other investments.”

He said impressed with the results, QPIC’s board of directors has recommended the distribution of cash dividends at 10 per cent of the company’s paid up capital.

QPIC’s vice chairman and CEO Sadoun Ali said despite the improved performance of the aromatics project (paraxylene) during the financial year owing primarily to its products’ prices reaching their peaks, the matter remains subject to market performance, which noticeably dropped during the first quarter.

According to him, QPIC is exploring ways to improve the project’s performance, bringing it to the level of similar projects around the world, as failure would negatively impact QPIC results.

"This is being done in coordination with KARO’s management and our project partners, Petrochemical Industries Company and Kuwait National Petroleum Company. This has resulted in reasonable but not permanent improvement in some elements of the project. We continue to wait for Kuwait Petroleum Corporation’s intervention in order to resolve pending issues to prevent the project from faltering," he noted.

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."
 
He stressed on the importance of developing the local industries along with the private sector, especially at the downstream level for the added value.

QPIC, he said, was 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.-TradeArabia News Service