Posted on August 05, 2015
Mesaieed Petrochemical Holding Company (MPHC) has announced its financial results for the first half of 2015, posting a consolidated net profit of QR 402.8 million. The profit is a decrease of QR 496.7 million, or 55.2 percent over the same period in 2014, while the second quarter earnings were significantly up by 146.7 percent over the first quarter of 2015. The year-on-year reduction was driven by planned major maintenance shutdowns and due to weak product prices.
The preventive maintenance and warranty shutdowns are an essential requirement for large, industrial plants as they can help minimize unplanned disruption, ensure product quality is maintained and ultimately contribute to an extension of plant's production life. The quarter-on-quarter substantial increase was mainly due to increase in sales volumes following successful completion of the planned major maintenance shutdowns in Q1 2015. The group's profit was also aided by recognition of a tax refund of QR 37.4 million for the period. The group continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements with Qatar Petroleum. This contracting arrangement is an important value driver for the group profitability in a challenging market condition.

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The closing cash position across all group companies after the first six months of operations and after distribution of previous year's dividend of QR 1.3 billion, was a robust QR 1.2 billion. Total assets at June 30, 2015 was at QR 16.8 billion, a decrease of QR 1.7 billion, or 9.1 percent, compared to the previous year end. The total debt is QR 1.4 billion down QR 0.1 billion versus Dec. 31, 2014, arising from one of the group's joint venture. Management reporting revenue for the six months ended June 30, 2015, calculated by proportionately consolidating group results as per IAS 31, was QR 1.5 billion, a decrease of QR 634.4 million, or 29.9 percent, on the same period of 2014 (2014, Q2: QR 2.1 billion) primarily due to planned facility maintenance in the current period, which has been successfully completed, and weaker product prices following the significant fall in the global oil prices in Q4, 2014 that started to affect product prices.