(MENAFN- The Peninsula) H E Dr Mohammed bin Saleh Al Sada, the Minister of Energy and Industry, and the Chairman of Mesaieed Petrochemical Holding Company (MPHC), has expressed optimism over the oil market as the price of Brent crude hit $62 per barrel.
Answering questions on the sidelines of MPHC ordinary general assembly meeting yesterday, the minister said there is a general trend of improvement in oil prices, which showed in the last two weeks as prices increased, QNA reported.
MPHC has expressed confidence that the group can continue its growth story, despite falling oil prices affecting it's activities indirectly. MPHC is confident that the group can build on its excellent financial and operation results of 2014, Al Sada said yesterday. The year 2014 marked the first full year of operation for the group.
Addressing the ordinary general assembly meeting of MPHC, Dr Al Sada said the declining oil prices will affect the group's activities indirectly. But it has the ability to deliver best results this year. He said the group has set a primary strategy of maximising shareholder value by capitalising on is three group companies' numerous competitive strengths.
Principally, the group benefits from access to cost-advantaged feedstock, integrated plants for production and export operations, a diverse base of worldwide clients and the fact that all of the group companies' production facilities are located within Qatar.
Dr Al Sada said the group companies all have well-established positions in the petrochemical segment, with the companies being established. The companies have recognised operational track records and the proven ability to generate strong operating cash flows. As a result, the group companies have historically achieved returns higher than average in the petrochemical industry in the region.
"With these strengths, and under the wise leadership of
H H the Emir, Sheikh Tamim bin Hamad Al Thani, it is our firm belief that the group is well-positioned to withstand the challenging economic times ahead," he said.
On the cost optimisation, the Chairman said the Board of Directors established a committee to identify and capture cost-saving opportunities throughout all group companies. This exercise is considered essential to ensure the group maximises its cost efficiency, and its progress and recommendations will be closely monitored by senior management.
The meeting approved the board's recommendation for a dividend payment of QR1.10 per share, representing 11 percent of the nominal share value. The Assembly also endorsed the board of directors' report on MPHC's operations and financial performance for the financial year ended December 31, 2014, and future plans of the company.
MPHC had earlier announced its financial results for 2014 with a consolidated net profit of QR1.8bn. The company's revenue for the year ended December 31, 2014 stood at QR4.3bn.
The group continued to maintain strong EBITDA margins across all segments. Its liquidity position remained strong during the year, on buoyant cash realisation ratios across all group companies, with cash held across the group after distributing the previous year's QR439.7m dividend, of approximately QR2.7bn. Total assets closed the year at QR14.6bn, an increase of QR1.4bn, or 10.9 percent, compared to the previous year.
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