Qurain Petrochemicals Industries Company (QPIC) announces a net profit of KD 3,251,537 for the quarter ended 31 March 2010, compared to KD 8,788,639 in the same period of 2009. The net earnings per share (EPS) is 2.97 fils compared with 8.00 fils for the same period last year. The decline in earnings is largely due to lower petrochemical prices in the first half of 2009 and pre-operating expenses of associate companies, namely The Kuwait Aromatics Company.
The Kuwait Aromaitcs Plant was inaugurated by His Highness the Amir on February 2010 and has commenced commercial production that is expected to begin earning in the second half of 2010.
Chairman of QPIC, Sheikh Mubarak Abduallah Al-Sabah, commenting on the results said: “The earnings this quarter is a reflection of the decline in petrochemical prices in the first half of 2009, a significant recovery has been witnessed since the 2nd half of last year that we expect to reflect in our earnings in the coming years. The Paraxylene Project has now been completed and the Kuwait Aromatics Company can now benefit from this new operation going forward.”
“Overall, our income was in-line with our expectations and we have seen our shareholder equity increase by 3% (KD 5.18 million) over the same period. QPIC also enjoys a solid cash position that will allow it to take part in potential opportunities in the sector” concluded Sheikh Mubarak.
QPIC’s overall assets have remained in line with the previous quarter standing at KD 191 million with a book value of 167 fils per share.
Dividend income from Equate and The Kuwait Olefins Company totalled KD7.41 million compared with KD11.25 million received by Equate in the previous year
The two quarter delay in the completion of the Paraxylene Project created additional pre-operating expenses for Kuwait Aromatics Company and resulting in a net loss.