Qurain Petrochemical Industries Company (QPIC) has announced a net profit of KD24.7 million ($81.8 million) for the year ended March 31, 2016.

This represents an increase of 34 per cent or KD6.3 million ($20.8 million) over the KD18.4 million ($60.9 million) net income posted the previous year. This is after excluding KD12.9 million ($42.7 million) in extraordinary unrealised gains resulting from the reclassification of Sadafco (Saudi Dairy & Foodstuff Company) from an associate investment to a subsidiary during the previous year, said the company.

Earnings per share (EPS) for the year amounted to 23.63 fils compared to 29.80 fils the previous year.

QPIC’s board of directors recommended a cash dividend of 10 per cent (10 fils per share), subject to approval by the company's general assembly and regulatory authorities, it said.

Revenue from consolidated sales increased 48 per cent to reach KD162.1 million ($536.5 million) from KD109.2 million ($361.4 million) reported the previous year.

Total assets stood at KD521.5 million ($1.73 billion) as at March 31, 2016, compared to KD527.9 million ($1.75 billion) on March 31, 2015, representing a slight decrease of 1 per cent mainly owing to the decrease in fair valuation of unquoted financial assets available for sale.

QPIC chairman Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah said the results show the soundness and diversification of QPIC’s investments, which can withstand the geopolitical and economic circumstances that the region is encountering.  

“QPIC continues to actively seek new local and regional investment opportunities, in partnership with well reputed international players within the field,” he said.

QPIC vice chairman and chief executive officer Sadoun Ali said: “The year-end results were in line with our expectations and the recently adopted policy to diversify QPIC’s main sources of income. Despite the deteriorating performance of the oil and gas sector, and the lower dividends received from Equate Petrochemical and The Kuwait Olefins Company over the past two years, QPIC has maintained and enhanced its profitability levels through its subsidiaries and associates. In particular, Sadafco and Kuwait Aromatics were the main contributors to QPIC’s higher share of income, and we expect them to continue to deliver positively in the future.” – TradeArabia News Service