Qurain Petrochemical Industries Company (QPIC) has posted a net profit of KD31.35 million ($104.23 million) for the financial year ended March 31.

It compares favourably to a net profit of KD27.46 million made last year, representing an increase of KD3.89 million - 14 per cent, said a statement.

The earnings per share (EPS) for the year stood at 29.80 fils compared to an EPS of 25.94 fils per share for the year before, it said.

The QPIC board is recommending the distribution of a cash dividend of 10 per cent (10 fils per share), subject to approval by the company's General Assembly and regulatory authorities.

The consolidated operational revenue has increased by 111 per cent to KD67.71 million compared to KD32.03 million.

The total consolidated assets increased to KD527.97 million compared to KD364.26 million the previous year, mainly owing to the new acquisitions made by QPIC in Sadafco - Saudia Dairy and Foodstuff Company – during the second quarter of the financial year.

Following the acquisition, QPIC’s share in Sadafco reached 40 per cent, reclassifying the dairy company as a subsidiary instead of an associate.

The profits for the quarter at KD16.43 million were 11 per cent lower in comparison to KD18.54 million during the same period last year, affected by the lower dividends received from Equate Petrochemicals and The Kuwait Olefins Company (TKOC) that were impacted by the international drop in the prices of oil and petrochemicals, said the statement.

Despite lower dividends received from its investments, results for the year significantly exceeded expectations due to the extraordinary unrealized gains of KD12.91 million owing to the reclassification of Sadafco, it said.

Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, chairman, said: “The results achieved reflect QPIC’s sound investment and diversification strategies that have enabled the company to record excellent performance levels, despite the sharp decline in oil prices during 2014 and further to hitting its price cyclical peaks in the previous financial year. QPIC actively seeks new and viable local and regional investment opportunities with well-reputed entities.” - TradeArabia News Service