Petrochemical conglomerate Mesaieed Petrochemical Holding Company (MPHC) announced a net profit of QR 532 million for the year ended 31 December 2020, down by 74% compared to last year. The Group revenue declined by 17% to reach QR 2.4 billion (assuming proportionate consolidation) as compared to QR 2.9 billion for 2019. Earnings per share (EPS) amounted to QR 0.042 for the financial year 2020, as compared to QR 0.165 for last year.

During the year, selling prices declined by 12%, while sales volumes fell by 5% as compared to last year, and both translated into a decrease in revenue by 17%. The production dropped by 9% amid periodic turnaround and maintenance shutdowns during the year.

According to the release, macroeconomic headwinds continued to weigh on the business performance of the Group during the year 2020, amid slower economic growth on account of weaker crude oil environment and COVID-19 pandemic. All of this led to an increased pressure on MPHC’s product prices, and negatively affected the

There has been signs of gradual recovery of the global economy noted in the later part of the year, with notable recoveries in product prices on the back of crude price rebound, continuous unprecedented stimulus announcements while lifting of lockdowns in major markets, supplemented by notable optimism around the vaccine roll-out.

The operational performance for the financial year ended 31 December 2020 was also impacted by planned turnaround and preventive maintenance shutdowns implemented in certain MPHC’s joint venture facilities, which caused the production volumes to decline, by 9% compared to last year, to reach 1.0 million MT.

There were no plant stoppages due to any demand related reasons, nor, were there any changes to the planned maintenance timelines, amid COVID-19 spread. All of the facilities successfully completed their respective planned turnarounds within their planned timelines, with lower than budgeted CAPEX and operating expenditures.

“Despite momentous macroeconomic challenges, we remained resilient and continued to implement our business strategy to contain cost and specifically implemented OPEX and CAPEX optimization measures. During this year, despite the threats posed to our operations amid spread of COVID-19, we successfully implemented our planned turnarounds within the defined timelines and budget,” Ahmad Saif Al-Sulaiti, Chairman of the Board of Directors, MHPC, said.

Entering 2021, we remain focused on our business strategy to solidify our market position, with a focus on generating improved shareholder returns, via leveraging our competitive advantages with a leaner cost base, Al-Sulaiti added.