DOHA: Mesaieed Petrochemical Holding Company (MPHC), yesterday announced a net profit of QR719m for year ended 31 December 2024, representing a decline compared to the year ended 31 December 2023.
Commenting of the financial and operational performance for the year ended 31 December 2024, Ahmad Saif Al Sulaiti, Chairman of the Board of Directors, MPHC, said: “Despite the challenges presented by the current macroeconomic context and overall market volatility, MPHC’s robust balance sheet underscores our enduring strength in both competitiveness and financial capabilities. Our strategic initiatives are designed to navigate these turbulent times. We remain steadfast in our commitment to delivering long-term value and stability to our stakeholders. By leveraging our financial resilience, operational excellence, and innovative approaches, we aim to sustain growth and enhance shareholder value, ensuring that MPHC remains a leader in the region’s petrochemical industry.”
The reduction in profitability was mainly due to decrease in selling prices and lower sales volumes, which led to a drop in the Group’s revenue, along with the contraction in profit margins.
Despite the overall revenue decline, MPHC experienced a decrease in sales volumes compared to YE-23. This decrease was primarily driven by lower sales volumes reported in the petrochemicals segment, which was partially offset byhigher sales volumes in the chlor-alkali segment.
However, EBITDA for the current period noted a decline versus YE-23, mainly due to lower revenue. Additionally, the drop in production and subsequent sales volumes within the petrochemical segment, coupled with a decline in the average selling prices, negatively impacted the group’s overall EBITDA and EBITDA margins for YE-24 compared to the same period last year. These factors collectively contributed to the decreased financial performance observed in the year ended 31 December 2024.
Overall, the financial results were impacted by lower earnings from both segments compared to the same period last year. The overall performance of these two segments resulted in a net negative effect on the company’s overall results.
Given the liquidity required for current and future capital projects and considering both short- and long-term debt obligations, along with macroeconomic outlook, the Board of Directors proposes a 2H-2024 dividend distribution of QR377m (equating to QR0.03 per share), bringing the total annual dividend distribution for the year ended 31 December 2024 of QR716m, equivalent to a payout of QR0.057 per share for the full year, subject to necessary approval in the Annual General Assembly Meeting.
MPHC will host an IR earnings call with investors to discuss its results, on Wednesday, 5 February2024 at 1:30 p.m. Doha Time. The IR presentation that accompanies the conference call will be posted on the ‘financial information’ page within the Investor Relations section at MPHC’s website.
