(MENAFN- The Peninsula) Mesaieed Petroch-emical Holding Company (MPHC), a subsidiary of Qatar Petroleum, yesterday projected a lower sales volume and earnings for 2015.
In a statement that explained on the group's recently approved budget for 2015, Managing Director Khalid Al Subaey said MPHC's sales volumes are expected to decrease marginally in 2015 due to planned major maintenance shut-downs at the facilities of two of the group's affiliates, RLOC and Q-Chem II. These facilities started up in 2010, and as per their established preventative and warranty maintenance programs, are required to undergo extensive routine maintenance from time to time.
Such planned major maintenance is an essential requirement for large industrial facilities as they can help minimise unplanned disruptions, ensure product quality is maintained and, ultimately, contribute to an extension of the plants' productive life, improved reliability, and a minimisation of their environmental impact.
Al Subaey also noted consolidated earnings in 2015 are also expected to be impacted by the effects of the prevailing economic conditions on international price levels of the group's key products. While the downward product pricing pressure is expected to have an impact, the group companies' continued focus on efficient, cost effective operations is expected to help support continued profitability.
In addition, the group is expected to continue to benefit from competitively priced ethane feedstock and fuel gas supplied by Qatar Petroleum under long-term supply agreements, and also to continue to be eligible for tax refunds subject to the fulfillment of specified conditions of the Public Revenue and Tax Department. Liquidity levels are expected to remain strong due to the muted capital expenditure program and relatively low debt.
MPHC reiterates its commitment to openness and transparency, and confirms that in line with the company's disclosure practices, the Qatar Exchange will be informed of material events impacting performance, he said.
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