- MPHC reported 39% decline in net profit for 2023 to QR1.1 billion due to lower revenue amid weak commodity prices.
- Total production remained steady at 1.137 million metric tonnes as operations showed resilience.
- The proposed annual dividend of QR1.1 billion equals 100% payout ratio and 5% dividend yield based on share price.
Mesaieed Petrochemical Holding Company (MPHC), a leading Qatari petrochemicals producer, announced a 39% decline in net profit to QR1.1 billion for 2023, compared to QR1.8 billion in 2022.
The drop in earnings was primarily driven by a 21% fall in revenue to QR3.1 billion, stemming from lower global commodity prices and softened demand amid economic headwinds. However, MPHC’s operations remained robust with total production volumes holding steady at 1.137 million metric tonnes.
MPHC Chairman Ahmad Saif Al Sulaiti said the company navigated challenges successfully and achieved commendable results despite volatility. He thanked QatarEnergy for fulfilling its IPO commitment by distributing the second tranche of incentive shares to eligible shareholders.
Every quarter, fourth-quarter revenue increased by 8% and net profit declined by 11% compared to the third quarter. The rise in revenue was mainly due to higher realized selling prices, signalling early signs of recovery as commodity prices ticked up.
Given MPHC’s financial position and business outlook, the Board proposed an annual dividend of QR1.1 billion for 2023, representing a 100% payout ratio. This equals a dividend per share of QR0.086 and an attractive 5% dividend yield.
MPHC appears well-positioned to ride out near-term headwinds, underpinned by optimized operations and cost efficiencies. The company remains focused on reducing environmental impacts while boosting energy efficiency.
With macro conditions expected to improve and commodity demand likely rebounding, MPHC seems poised to return to profit growth in 2024. The company’s resilience and shareholder returns make it an appealing investment in Qatar’s hydrocarbon sector.
