(MENAFN- The Peninsula) By Mohammad Shoeb | The Peninsula
DOHA: Mesaieed Petrochemical Holding Company (MPHC) is exploring investment opportunities in some specific areas to maintain and improve its competitiveness, Ahmad Saif Al Sulaiti, Chairman of the Board of Directors of MPHC, said yesterday.
In addition new expansion and new business development, the MPHC, region's premier diversified petrochemical conglomerates, is also working to invest in its existing businesses and operations to improve cost efficiency.
'MPHC is embarking on a selective capital expenditure programme together with suitable business development opportunities. We believe that continued investments in operating assets are essential to remain competitive in the market, and we will continue to invest when the right opportunity becomes available, Al Sulaiti told shareholders in his address at the company's Annual General Meeting held yesterday. 'These investments will further strengthen the group's competitive position in the region.
MPHC already possess several competitive advantages, most notably that being an excellent cost positioning largely due to competitively priced feedstock. The group benefits from access to competitively priced feedstock under long-term agreements. In addition the group also enjoys several other advantages, including robust liquidity position, an integrated production and export operations and a diverse base of worldwide clients.
'The Board of Directors of MPHC is confident that the group can build on these core strengths to mitigate risks and challenges posed by the current economic situation, noted Al Sulaiti.
Meanwhile, the shareholders of the company approved all the items on the agenda of the AGM, including the Board's recommendation to distribute annual dividend for the last financial year ended December 31, 2017 of QR879m, equivalent to QR0.7 (70 dirhams) per share.
The group registered a robust net profit of QR1.1bn for the year ended 31 December, 2017, outperforming its previous year's net profit of QR995m.
The year-on-year surge in profits was due to improved selling prices by 6 percent - in line with the crude oil price upswing - and increase in other income, despite the decline in sales volumes arising from the planned maintenance shutdowns in some of the group companies' plants. The group's earnings per share stood at QR0.87, compared to QR0.79 from a year ago.
2017 was characterised by a number of opportunities that have been successfully translated into stellar performance. The group successfully completed the planned maintenance shutdowns in some of its plants. Despite the shutdowns, the financial and operational results were commendable and exceeded the group's budget.
Total assets of MPHC as at 31 December, 2017 stood at QR14.8bn, compared to QR14.4bn as at 31 December, 2016.
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