Mesaieed Petrochemical Holding Company (MPHC) Q2 2024 earnings summary

Executive summary

• Interim dividend declared for the first time, reflecting commitment to shareholders and capital market development.

• Board approved QAR 339 million interim dividend for H1 2024, representing 85% payout of net profit.

• QAR 1.1 billion annual dividend paid for FY 2023, equating to 100% payout of net profit.

• 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, through two main segments: Petrochemicals and Chlor-Alkali.

Financial highlights

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

• Revenue for H1 2024 declined 7% to QAR 1.4 billion, mainly due to a 13% drop in average selling prices.

• 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 3.4 billion as of June 30, 2024; cash and cash equivalents were QR 133.5 million.

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

Outlook and guidance

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

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

• Construction of Qatar's first PVC plant is underway, expected completion by mid-2025, with a nameplate capacity of 350k mtpa.

• Board announced intention to enter a JV for a new salt plant, targeting 1 million tons per annum capacity.

• Results for the six-month period are not necessarily indicative of full-year performance.