Qurain Petrochemical Industries Company announces a profit of KD 7.79 million
Qurain Petrochemical Industries Company - has announced a net profit of KD 7.79 million (US$ 27.26 million), or 7.10 fils per share, for the 9 month period to the end of September 30th, 2009. This represents an increase of 115% per cent on the KD 3.63 million profit (US$ 12.70 Million), or 3.31 fils per share, for the same period last year.
Al-Qurain’s Chairman, Sheikh Mubarak Abduallah Al-Sabah, announced that profit from operations for the first 9 months of 2009 increased by 83 per cent, to KD 8.92 million (US$ 31.22 million) compared with the same period in 2008 (KD 4.88 million (US$ 17.08 million). The significant increase in earnings was due to a recovery in global markets and sound financial management, which saw total expenses reduced by 26% compared to the same period last year.
Available for sale investments (AFS) carrying cost in the balance sheet as of 30 September 2009 has increased by 2% (KD 2.05 million). Increase investments in associates, and AFS is in accordance with the company plan to diversify its activities, increase its core investments, and add shareholder value.
This reporting period saw a number of significant events and achievements for Al-Qurain and its investments. The Kuwait Olefins company began commercial production in late 2008 and has been producing since the beginning of 2009. The Kuwait Olefins Company has a capacity to produce 850,000 tonnes of Ethylene and 600,000 tonnes of Ethylene Glycol and is a joint-venture between Al-Qurain, PIC, DOW and Boubyan, where Al-Qurain has a 6% holding. The Kuwait Olefins Company capacity is in addition to Al-Qurain’s investment in EQUATE which has a capacity of 800,000 tonnes of Ethylene, 830,000 tonnes of Polyethylene, and 400,000 tonnes of Ethylene Glycol. From their lows in Q1 2009, Polyethylene and Ethylene Glycol prices have witnessed a rebound of approximately 65% and 90% respectively.
In the 3rd Quarter of 2009 the Kuwait Styrene Company completed its commissioning and began production of its 450,000 tone styrene plant. This world-scale plant is Kuwait’s first ever styrene facility. Al-Qurain’s investment in this plant is through its associate company the Kuwait Aromatics Company in which it holds 20%. Global styrene prices have also witnessed a significant increase from their low in early 2009.
The Kuwait Aromatics Company achieved mechanical completion in the 3rd Quarter of this year, a major milestone for the plant that will produce 820,000 tonnes of Paraxylene and 400,000 tonnes of Benzene. Al-Qurain booked a loss of KD 4.2 million (US$ 14.7 million) for the 9 months of 2009 as part of the plant’s pre-operating expenses. The plant is expected to begin commercial production prior to year-end.
The Algerian Methanol Company witnessed significant progress in the first 9 months of this year with the completion of the final review of all provisions of the partnership agreement with SONATRACH – the Algerian Oil Company. Following the global economic recession the 1,000,000 tone methanol plant is expect to benefit from lower EPC costs further improving the overall economics of the project, which is expected to begin production in early 2013. Al-Qurain holds 42.5% of the Algerian Methanol Company which retains 51% of the project while the other 49% is held by SONATRACH.
“As all of the company’s major projects begin production and with Al-Qurain’s solid financial position with no bank debts or significant liabilities, the company has set the platform for sustained future growth and returns to its shareholders.” said Al-Qurain Chairman, Sheikh Mubarak Abduallah Al-Sabah