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, mainly due to lower prices and operational disruptions in the petrochemical segment.

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

• Among the top 10 companies by market capitalization on the Qatar Exchange, with QatarEnergy as the majority shareholder.

• Maintains robust 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 QAR 2,112 million, mainly due to lower average selling prices.

• Net profit for the period was QAR 567 million, down 33% year-over-year, with EPS at QAR 0.045.

• Average blended product prices declined by 10%, 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

• Product prices have stabilized quarter-on-quarter and show early signs of upward movement.

• Macroeconomic headwinds, including muted industrial growth and geopolitical tensions, are expected to continue affecting demand and commodity prices.

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

• CAPEX for 2024–2028 projected at QAR 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.