(MENAFN- Arab Times) Qurain Petrochemical Industries Company KSC (QPIC) announced today its financial results for the nine month period ended Dec 31, 2013. The company posted net profit of KD 9 million ($32 million), compared to KD 4 million ($13 million) during the same period last year, reflecting an increase of 143% or KD 5 million ($19 million). Earnings per share (EPS) for the quarter stood at 8.41 fils ($2.9 cents) compared to 3.36 fils ($1.2 cents) per share for the same period last year. QPIC's Chairman, Sheikh Mubarak Abdullah Al Mubarak Al Sabah said, "Total assets stood at KD 336 million ($1,189 million) as of December 31st 2013 compared to KD 299 million ($1,058) on the 31st March 2013, which represents an increase by 12% or KD 37 million ($131 million). Investments in associate companies have jumped by 155% or KD 76 million ($270 million) during the same period, which is attributed to the 29% stake acquisition in Saudia Dairy & Foodstuff Company (SADAFCO), in addition to the increase in share of profits from Kuwait Aromatics Company (KARO). He further added, "QPIC is actively seeking new local and regional investments opportunities particularly across the Petrochemical Industries as well as within the Energy & Industry sectors, in collaboration with world leading investment banks and consultants."
Moreover, QPIC's Vice Chairman and Chief Executive Officer, Sadoun Ali said, "Kuwait Aromatics Company (KARO) was the main driver in exceeding our expectations during the quarter, resulting in achieving a higher share of income due to favorable market conditions, in addition to our share of income from our new associate, SADAFCO". With regards to the Aromatics project (KPPC), Ali added:
"Despite the improved performance during the year owing to favorable market conditions, profits are expected to diminish due to the anticipated reversal in market trends. QPIC is exploring ways to improve the performance of the project to align it with similar projects around the world. This is being done in coordination with KARO's management and our project partners, Petrochemical Industries Company (PIC) and Kuwait National Petroleum Company (KNPC), which resulted in noticeable but not significant improvements in the project's net returns. However, QPIC is awaiting Kuwait Petroleum Company's (KPC's) effective intervention to resolve pending issues to prevent a significant impact on the project's economics."
Qurain Petrochemical Industries Company (QPIC) was established by Amiri Decree in 2004 with a share capital of Kuwaiti Dinars 110 million. The establishment of QPIC by the Petrochemical Industries Company (PIC) followed Kuwait Petroleum Company's (KPC) strategic initiative to encourage more private sector engagement in major petrochemical projects in Kuwait. Headquartered in Kuwait, QPIC is engaged in several projects including EQUATE, Olefins II, Aromatics and Styrene in Kuwait, and is actively investigating local, regional, and international opportunities as part of its long-term strategy. United Industries Company, a KIPCO Group company, is a major shareholder in QPIC.
The KIPCO Group is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of $29 billion as at Sept 30, 2013. The Group has significant ownership interests in over 60 companies operating across 24 countries. The group's main business sectors are financial services, media, real estate and manufacturing. Through its core companies, subsidiaries and affiliates, KIPCO also has interests in the education and medical sectors.
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