Mesaieed Petrochemicals Net Profit Rose to QAR 1.4 Billion in 2018

Ø  Earnings: The Company’s net profit jumped to QR 1,394.5 million in 2018, compared to QR 1,088.2 million in 2017, a growth rate of 28.0%. Earnings per share reached QR 1.11 compared to QR 0.87 for 2017. Profits in the fourth quarter of 2018 amounted to QR 366.7 million, versus QR 278.5 million for the corresponding period of 2017.

The improvement in profit comes as a result of the increase in the sales volume and prices of the company's products during the last year, as the company benefited from the rise in prices of petrochemical products in the world markets and the signing of sales contracts at relatively good price levels compared to 2017. The company's ability to maintain profitability levels and future growth depends to a large extent on the prices of its products in the global markets.

The profits on 2018 included tax refunds of about QR 169.3 million, as compared to refunds of QR100.8 million in 2017, which contributed to the improvement of the profitability of the company.

Ø  Revenues: The main source of revenue for the company is its share of the results of joint venture projects (Q-Chem, Q-Chem II and Qatar Vinyl). The revenues of these projects amounted to about QR 1,188 million in 2018, 96% of the total revenues of the company, compared to QR971.7 million in 2017, a growth rate of 22.0%. The majority of the sales of these joint ventures are made by Q-Chem.

Ø  Shareholders' equity: reached QR 15,065.7 million at the end of 2018, compared to QR 14,584.8 in the same period of 2017. The book value of the share stood at QR 12.0 and the return on equity was 9.25%, compared to 7.46% for 2017.

Ø  Dividends: The Board of Directors recommended a cash dividend of 8% of the nominal value of the share, i.e. QR 0.80 (5.14% dividend yield). In 2017 the dividend was 7% per share.

Ø  Market ratios: The stock is currently traded at a PE multiple of 14.0 times, and a book value multiple of 1.30 times.