MPHC posts QR532m net profit for 2020 05 Mar 2021 - 9:13 The Peninsula Mesaieed Petrochemical Holding Company (‘MPHC’ or ‘the Group’), one of the region’s premier diversified petrochemical conglomerates, yesterday announced a net profit of QR532m for the year ended December 31, 2020. Macroeconomic headwinds continued to weigh on the business performance of the Group during the year 2020, amid slower economic growth on account of weaker crude oil environment and COVID-19 pandemic. All of this led to increased pressure on MPHC’s product prices, and negatively affected the Group’s performance for the financial year 2020. There have been signs of gradual recovery of the global economy noted in the later part of the year, with notable recoveries in product prices on the back of crude price rebound, continuous unprecedented stimulus announcements while lifting of lockdowns in major markets, supplemented by notable optimism around the vaccine roll-out. MPHC responded by leveraging its inherent strengths: its competitive advantage of having uninterrupted, longterm access to competitively priced feedstock; low operating cost base; stronger liquidity position; and its sales and marketing partnership with a leader in chemical product marketing and distribution which improved Group’s access to global markets. In the current distressed situation, the dedicated sales and marketing team was able to provide MPHC wider access to geographies in the most competitive means and thereby limiting the impact of such vulnerabilities and creating several arbitrage opportunities. After reviewing the year’s financial performance in light of current macroeconomic conditions, the Group’s liquidity position and future investing and financing needs, the Board of Directors proposed a total annual dividend distribution for the year ended December 31, 2020 of QR503m, equivalent to a QR0.04 per share and representing a pay-out ratio of 94 percent.