Qurain Petrochemical Industries Company (QPIC) has announced a net profit of KD0.93 million ($3.3 million) for the first quarter of the 2014/2015 financial year ended June 30, 2014, which was a decrease of 77.6 per cent or KD3.2 million ($11.4 million) from the KD4.15 ($14.7) million net profit posted during the same period last year.

The profit drop was mainly due to the poor performance from Kuwait Paraxylene Production Co (KPPC). Earnings per share (EPS) for the quarter stood at 0.88 fils (3.1 cents) compared to an EPS of 3.89 fils (13.8 cents) in the previous financial year.

Sheikh Mubarak Abdullah Al-Mubarak Al Sabah, QPIC chairman, said: “The main two contributors in achieving these results were the higher share of income received from Saudia Dairy and Foodstuff Co (Sadafco), in addition to the realized gains on partial sale of QPIC’s portfolio shares. Variance in comparison with last year’s performance is mainly attributed to Kuwait Aromatics Company’s lower share of income driven by KPPC’s poor profitability.”

On QPIC’s future plans, he added: “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 these results, QPIC’s vice chairman and chief executive officer, Sadoun Ali said: "Sales revenues at KD1.0 ($3.54) million have increased by 7.5 per cent or KD0.07 million ($0.25 million) over the same period last year. Total assets stood at KD358.8 million ($1,271 million) as at June 30, 2014 compared to KD364.3 million ($1,290 million) on March 31, 2014. Investments in associate companies increased by 0.2 per cent or KD0.26 million ($0.92 million) during the said period owing to the net increase in share of profits from Sadafco and National Petroleum Services Co (Napesco). “

He added: “Following KPPC’s impressive performance during the previous year due to its products reaching their cyclical peak prices, the anticipated downturn in its products’ prices have started effecting its performance and profitability which significantly dropped during the year. QPIC remains waiting for Kuwait Petroleum Corporation’s intervention in order to resolve the pending issues and restructure the company to prevent the project from faltering.” - TradeArabia News Service