Qurain Petrochemicals Industries Company lost over US$5 million
Qurain Petrochemicals Industries Company (QPIC) today announced a net loss of KD 1,584,981 (US$5.3 million) for the first nine months of 2010 ended 30 September 2010, compared to KD 7,791,664 in the same period of 2009. Net earnings per share (EPS) is 1.44 fils compared with 7.10 fils for the same period last year.
Sheikh Mubarak Abduallah Al-Sabah, Chairman of QPIC said that the reasons for the loss resulted from the performance of Kuwait Paraxylene Company (KPPC)'s paraxylene plant. KPPC is 20% owned by QPIC through its ownership of the Kuwait Aromatics Company, 40% owned by Kuwait Petroleum Company (KPC) through its interest in Petrochemical Industries Company (PIC), and 40% owned by Kuwait National Petroleum Company (KNPC). The plant is managed by EQUATE. Sheikh Mubarak added that the operating losses suffered by KPPC were mainly due to the high cost of raw materials from KNPC and a decrease in the world price of paraxylene. This was compounded by the cost of the initial capital investment for setting up the plant.
Sheikh Mubarak confirmed that KPPC's management is evaluating the current position in relation to KPPC and will submit its suggestions towards a resolution in coordination with all parties involved.
Sheikh Mubarak said: "Overall, our income was in-line with expectations and we have seen our shareholder equity increase by 20% (KD 30 million) compared to the same period last year. QPIC also enjoys a solid cash position that will allow it to opportunities in the sector as and when they become apparent."
QPIC's overall assets remained in line with the previous quarter and stand at KD 181.5 million, with a book value of 161 fils per share.
Amongst the highest revenue generators for QPIC is its 6% stake of EQUATE. QPIC, along with companies that include EQUATE, have a mandate of transforming the petrochemical industry in Kuwait into a world class one.