QPIC Holds its Annual General Meeting
Qurain Petrochemical Industries Company (QPIC) today held its Annual General Meeting at the Ministry of Commerce and Industry. At the meeting the company confirmed a net profit of KD 7,098,268 Million (US$ 24,855,000 Million), or 6.47 fils per share, for the year ended 31 December, 2009.
QPIC’s Chairman, Sheikh Mubarak Abduallah Al-Sabah, said: “2009 was a successful year for us, with our net profit for the end year of 2009 increased by 226 per cent, to KD 7.098 million compared with the 2008 loss of KD 5.6 Million. Our net earnings per share (EPS) were 6.47 fils per share, against negative earnings per share of 5.12 fils in 2008.
“I am also pleased to announce today the inauguration of our Aromatics and Olefins II Plant, which is an important milestone for our company, and extend my thanks to our shareholders who helped make this plant a reality through their trust and confidence in us and our partners, the Kuwait Aromatics Company, EQUATE, and the Kuwait Olefins Company.”
QPIC’s total assets as of 31 December, 2009 were valued at KD 191.35 million (US$ 669.72 million), a 35 per cent increase compared to 31 December, 2008. The increase is directly attributableto the completion of the company’s major petrochemical plants in Kuwait. Available for sale investments (AFS) increased by 27 per cent or KD 28.13 million (US$ 98.45 million), and investment in associates increased by 30 per cent or KD 10.44 million (US$ 36.54 million) following equity payments made in the Kuwait Aromatics Company during 2009.
Speaking of the company’s future plans, Sheikh Mubarak said: “QPIC is committed to seeking the participation in variety of petrochemicals downstream projects locally and globally, establishing superior performance benchmarks, and superior standards of corporate governance through excellence in financial management and responsible corporate citizenship.
The year ahead is looking good for the petrochemical sector in the region, given the regions lower production cost advantage. With three new projects having commenced production in 2009, QPIC is well on its way to meeting its strategic objectives of sustained growth and returns to its shareholders.
QPIC’s initial investments commitments are in Aromatics and Stryene Projects with the equity of 20 per cent producing 400,000 tons per annum of Benzene and annually 820,000 tons of Para-Xylene, and 450,000 tons of Styrene. EQUATE with a share capital of 6 per cent producing 800,000 tons of Ethylene, 830,000 tons of polyethylene, and 400,000 tons of Ethylene Glycol. Also, QPIC invested in the Kuwait Olefins Company with equity of 6 % producing 850,000 tons per annum ethylene cracker and 600,000 tons per annum of Ethylene Glycol.
During 2009, QPIC subsidiaries witnessed a number of significant events and achievements which will provide long-term sustainable returns to shareholders.
• The Kuwait Olefins Company completed its first full year of production in 2009. The company operates an 850,000 tonne per annum Ethylene cracker and produces 600,000 tonnes per annum of Ethylene Glycol.
• EQUATE’s Polyethylene expansion of 225,000 tonnes was completed in the 2nd Quarter of 2009, bringing EQUATE’s production capacity to 800,000 tonnes of ethylene, 830,000 tonnes of Polyethylene, and 400,000 tonnes of Ethylene Glycol.
• The Kuwait Aromatics Company (KARO) completed construction and began production of its Paraxylene and Styrene plants, giving QPIC the capacity to produce 820,000 tonnes of Paraxylene, 400,000 tonnes of Benzene and450,000 tonnes of Styrene per annum.
• The Algerian Methanol Company has progressed in the development of its 1 million tonne methanol plant. The final review of all provisions of the partnership agreement with SONATRACH, the Algerian Oil Company, has been complete. The project is expected to commence production by mid-2013