Mesaieed Petrochemical Holding Company (MPHC) Q3 2024 earnings summary

Executive summary

• Net profit for the nine months ended 30 September 2024 was QAR 567 million (EPS QAR 0.045), down 33% year-over-year due to macroeconomic challenges, lower prices, and operational shutdowns.

• The group operates as a diversified petrochemical conglomerate with interests in olefins, polyolefins, alpha olefins, and chlor-alkali products, mainly through joint ventures in Qatar.

• Chlor-Alkali segment showed improved performance, partially offsetting declines in the petrochemical segment.

• Maintains strong liquidity, stable EBITDA margins, and a solid dividend record, supported by low-cost production and assured feedstock supply.

• Board approved and authorized the financials on October 28, 2024.

Financial highlights

• Revenue for the nine months ended 30 September 2024 declined 7% year-over-year to QR 2,112 million, mainly due to lower average selling prices.

• Net profit for the period was QR 566.7 million, down from QR 848.8 million year-over-year.

• Average blended product prices declined by 10% compared to the same period last year, resulting in a negative price variance of QAR 221 million.

• Cash and bank balances stood at QAR 3.2 billion as of 30 September 2024, with total assets at QAR 16.6 billion and total equity at QAR 16.2 billion.

• EBITDA margins remained resilient, consistently above 40% despite commodity price volatility.

Outlook and guidance

• No major shutdowns expected in the Chlor-Alkali segment for Q4 2024; planned shutdowns for Q-Chem II in 2025 and Q-Chem I in 2027.

• Demand for HDPE and Chlor-Alkali products expected to see a seasonal uptick in Q4 due to holiday-related demand and potential interest rate reductions.

• CAPEX for 2024–2028 projected at QR 2.08 billion, with major investments in turnaround, environmental, and operational projects.

• New PVC plant expected to be completed by mid-2025, fully integrated with existing facilities.

• Results for the nine-month period are not necessarily indicative of full-year 2024 performance.