MPHC embarks on selective capex programme this year

Mesaieed Petrochemical Holding Company (MPHC) plans to embark on selective capital expenditure programme this year. Addressing shareholder yesterday, Ahmad Saif Al Sulaiti, Chairman of MPHC said the Group is well poised to weather any downturn in crude oil prices.
“Despite the current economic environment, MPHC is embarking on a selective capital expenditure program together with suitable business development opportunities. We believe that continued investment in operating assets are essential to remain competitive in the market and we will continue to invest when the right opportunity becomes available. These investments will further strengthen the group’s competitive position in the region,” said Al Sulaiti at MPHC's Annual General Assembly Meeting held at La Cigale Hotel . The Chairman said MPHC possesses 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 supply agreements. Besides some of the tangible competitive advantages such as robust liquidity position and a strong asset base; qualified and highly trained workforce and a professional senior management team are the intangible competitive advantages that MPHC has built its success around.
“The group has set a primary strategy of maximising shareholder value by capitalising on its three group companies’ numerous competitive strengths across its value chain. MPHC thus is well poised to weather any downturn in crude oil prices,” said Al Sulaiti.
The Chairman added that the company was able to withstand the pressures posed by the prevailing unfavourable market conditions on the product price front and post commendable financial and operational results for the year under review.
“MPHC is focusing on maximising the value of its shareholders through immense initiatives. As you are aware, MPHC embarked on a number of cost optimization programs in the previous year. MPHC continued to reinforce these initiatives and was thus able to achieve operational excellence without compromising the quality, and HSE of its group companies. During the year, reassessment of the business operations coupled with reassessment of Capex, Opex and human capital requirements were carried out and costs were rationalised,” said the Chairman. “These efforts have resulted in improvement in many operating areas and we achieved an overall cost savings of 6 percent from 2016 budget, and I am confident that the management team will continue to achieve greater cost optimisation in the forthcoming year,” he added.