(MENAFN - Gulf Times) Mesaieed Petrochemical Holding Company (MPHC) has posted a half yearly net profit of QR305mn.
The company's closing cash position at the end of June was a 'robust QR1.4bn.
Total assets stood at QR14.6bn (as of June 30) compared with QR15.3bn in end-December 2018.
MPHC is one of the region's premier diversified petrochemical conglomerates with interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products.
The company's earnings per share was QR0.024 in end-June compared with QR0.053 in the same period last year.
MPHC had registered a net profit of QR361mn in the same period last year. 'The decrease in profit was due to reduction in selling prices in line with the drop in crude oil prices at the end of 2018, MPHC said.
The group 'continued to benefit from the supply of competitively priced ethane feedstock and fuel gas under long-term supply agreements. These contracting arrangements are an 'important value driver for the group's profitability in a 'competitive market environment, MPHC said.
While the petrochemical segment's revenue for the six months period that ended on June 30 was QR1.2bn, a decrease of 13% from previous year, the profit was QR379mn compared to the profit in the corresponding period in the previous year of QR524mn.
'The revenue was impacted by the drop in selling prices compared to the previous year and the profit was impacted by higher operating costs. Production was down by 3% on the previous year and sales volumes were marginally up by 1% on the previous year, MPHC said.
The chlor-alkali segment reported revenue of QR353mn for the six months period that ended in June, a decrease of 14% from previous year.
The profit was QR73mn compared to the profit in the corresponding period in the previous year of QR65mn. Sales revenue was impacted by the decrease in sales volumes by 2% and decrease in selling prices by 12%.
Production was lower by 5% from the previous year. The profit improved on previous year primarily due to the reduction in operating costs, MPHC noted.