Mesaieed Petrochemical Holding Company (MPHC) Q2 2024 earnings summary

Executive summary

• Interim dividend of QAR 339 million (QAR 0.027 per share) declared for H1 2024, representing 85% payout of net profit, marking the first such distribution and reflecting commitment to shareholder value.

• Net profit for H1 2024 was QAR 398.4 million, down 32% year-over-year, mainly due to lower selling prices and subdued demand.

• Ranked among the top 10 companies by market capitalization on the Qatar Exchange and #98 on Forbes' 2023 Top 100 Middle East Listed Companies.

• Operates as a holding entity with significant joint ventures in the Qatari petrochemical sector, with two main segments: Petrochemicals and Chlor-Alkali.

• Maintains a strong liquidity position, stable EBITDA margins, and a solid dividend record.

Financial highlights

• Revenue for H1 2024 was QAR 1.433 billion, down 7% year-over-year, mainly due to a 13% drop in average blended product prices despite higher sales volumes.

• EBITDA for H1 2024 was QAR 627 million, down 21% year-over-year; EBITDA margin fell to 44% from 52%.

• Cash and bank balances stood at QAR 2.705 billion as of June 30, 2024, reflecting dividend payments and positive cash flow.

• Total assets reached QAR 16.8 billion and total equity QAR 16.4 billion as of June 30, 2024.

• Q2 2024 net profit rose 5% sequentially, with revenue up 3% quarter-on-quarter due to higher prices and volumes.

Outlook and guidance

• No formal outlook provided; future performance seen as dependent on global economic recovery, inflation, and interest rates.

• CAPEX for 2024-2028 projected at QAR 2.08 billion, with major investments in plant upgrades, environmental projects, and a new PVC plant.

• China’s economic stimulus and global supply-demand dynamics could impact product prices and demand.