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KUWAIT CITY, May 10: QPIC – Qurain Petrochemical Industries Company – has announced a net profit of KD 24.7 million (US$ 81.8 million) for the year ended 31 March 2016. This represents an increase of 34% or KD 6.3 million (US$ 20.8 million) over the recurring KD 18.4 million (US$60.9 million) net income posted the previous year.
This is after excluding KD 12.9 million (US$42.7 million) in extraordinary unrealized gains resulting from the reclassification of SADAFCO – Saudi Dairy & Foodstuff Co – from an associate investment to a subsidiary during the previous year.
Earnings per share (EPS) for the year amounted to 23.63 fils (US$ 78.2 cents) compared to 29.80 fils (US$ 98.6 cents) the previous year. QPIC’s Board of Directors is recommending the distribution of a cash dividend of 10% (10 fils per share), subject to approval by the company’s General Assembly and regulatory authorities.
Revenue from consolidated sales increased 48% to reach KD 162.1 million (US$ 536.5 million) from KD 109.2 million (US$ 361.4 million) reported the previous year. Total assets stood at KD 521.5 million (US$ 1.73 billion) as at 31 March 2016, from KD 527.9 million (US$ 1.75 billion) on 31 March 2015, representing a slight decrease of 1% mainly owing to the decrease in fair valuation of unquoted financial assets available for sale. Commenting on the results, QPIC’s Chairman, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, said:
“The results achieved showcase the soundness and diversification of QPIC’s investments, which can withstand the geopolitical and economic circumstances that the region is encountering. QPIC continues to actively seek new local and regional investment opportunities, in partnership with well reputed international players within the field.”
On his part, QPIC’s Vice Chairman and Chief Executive Officer, Sadoun Ali, said:
“The year-end results were in line with our expectations and the recently adopted policy to diversify QPIC’s main sources of income. Despite the deteriorating performance of the oil and gas sector, and the lower dividends received from Equate Petrochemical & The Kuwait Olefins Company over the past two years, QPIC has maintained and enhanced its profitability levels through its subsidiaries and associates. In particular, SADAFCO and Kuwait Aromatics (KARO) were the main contributors to QPIC’s higher share of income, and we expect them to continue to deliver positively in the future.”