(The Group’s Comments) Mesaieed's Net Profit Drops to QAR 304.65 Million for the First Half of 2019

August 05, 2019

Profits: Mesaieed Petrochemical Holding Company’s 2019 first half profits decreased by 54.28% or QAR 361.8 million to QAR 304.65 million, compared to QAR 666.46 million for the same period last year, while the company’s earnings per share amounted to QAR 0.024 versus QAR 0.053 for the corresponding period of 2018. As for the second quarter, Mesaieed posted a net profit of about QAR 23.1 million, compared to QAR 309.81 million for the same quarter of 2018. The decline in profits was due to lower market prices, even though the company's sales volume grew by 1.0% during this period.

Revenues: The main source of revenue for the company is its share in the results of joint ventures (Q-Chem, Q-Chem II, Qatar Vinyl Company Ltd), which are joint investments with Qatar Petroleum and Chevron Phelps. The company's share of profits in those joint ventures decreased by about 23.3% or QAR 137.4 to settle at QAR 452.2 million for the first half of 2019, compared to QAR 589.6 million for the corresponding period of 2018.

The company's share of Q-Chem's profits fell by QR 76.3 million, and Q-Chem II dropped by QR 68.8 million, while its share in Qatar Vinyl's profits increased by QAR 7.8 million.