MPHC posts QR379 mn in net profit for H1-2025
Doha
Mesaieed Petrochemical Holding Company (MPHC) reported a net profit of QR379 million for the six months ended 30 June 2025, down slightly from the same period last year, as global petrochemical markets faced persistent pricing and demand pressures.
The Board of Directors approved an interim cash dividend of QR0.026 per share, representing 85% of net income for the period and totalling approximately QR327 million. Shareholders of record as of the close of trading on 20 August 2025 will be eligible to receive the payout, which will be processed by Edaa in accordance with applicable regulations.
Group revenue for H1-2025 stood at QR1.4 billion, with earnings per share at QR0.030. While sales volumes increased compared with the first half of 2024, lower average selling prices weighed on overall revenue and profitability.
EBITDA recorded a marginal decline in line with reduced top-line performance, with margins narrowing due to the drop in commodity prices across both the petrochemical and chlor-alkali segments.
The first half of 2025 was marked by weak global demand for ethylene, derivatives, and other petrochemicals amid subdued industrial activity and cautious consumer spending. A surge in global production capacity exacerbated oversupply, lowering utilisation rates and intensifying competition.
Price volatility—driven by fluctuating feedstock and energy costs, particularly crude oil—added uncertainty for naphtha-based producers. Regulatory compliance pressures and geopolitical risks further challenged operators, particularly those with ageing assets.
Commodity prices across MPHC's portfolio continued the downward trajectory seen earlier in the year, reversing the elevated levels of the past two years. Softer demand, increased supply from new capacity additions, and macroeconomic uncertainty led to margin compression and more cautious purchasing behaviour.
Despite the challenging market backdrop, MPHC maintained strong and adaptive operations. Production volumes improved year-on-year, supported by enhanced plant reliability and operational efficiencies.
Quarter-on-quarter, output increased, particularly in the petrochemical segment, leading to higher sales volumes. The improved selling prices in this segment offset weaker performance in the chlor-alkali segment, which was hit by subdued demand for products such as EDC and VCM due to a slowdown in construction and industrial activity, along with high global inventories.
MPHC closed the period with QR3.2 billion in cash and bank balances, reflecting a robust liquidity position. The decline from previous levels was mainly due to the distribution of the 2024 final dividend and funding for the Group's PVC project, partially offset by strong cash flow generation during the period.
Management remains focused on operational efficiency and cost optimisation to mitigate the impact of global market challenges.
The Group will also continue its investment in strategic projects, including the PVC plant, to diversify its portfolio and enhance long-term growth prospects.
MPHC will host an investor relations earnings call on 18 August 2025 at 1:30 p.m. Doha time to discuss its results, business outlook, and other matters. The accompanying investor presentation will be available on the company's website under the 'financial information' section.
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Tribune News Network Doha Mesaieed Petrochemical Holding Company (MPHC) reported a net profit of QR379 million for the six months ended 30 June 2025, down slightly from the same period last year, as global petrochemical markets faced persistent pricing and demand pressures. The Board of Directors approved an interim cash dividend of QR0.026 per share, representing 85% of net income for the period and totalling approximately QR327 million. Shareholders of record as of the close of trading on 20 August 2025 will be eligible to receive the payout, which will be processed by Edaa in accordance with applicable regulations. Group revenue for H1-2025 stood at QR1.4 billion, with earnings per share at QR0.030. While sales volumes increased compared with the first half of 2024, lower average selling prices weighed on overall revenue and profitability. EBITDA recorded a marginal decline in line with reduced top-line performance, with margins narrowing due to the drop in commodity prices across both the petrochemical and chlor-alkali segments. The first half of 2025 was marked by weak global demand for ethylene, derivatives, and other petrochemicals amid subdued industrial activity and cautious consumer spending. A surge in global production capacity exacerbated oversupply, lowering utilisation rates and intensifying competition. Price volatility—driven by fluctuating feedstock and energy costs, particularly crude oil—added uncertainty for naphtha-based producers. Regulatory compliance pressures and geopolitical risks further challenged operators, particularly those with ageing assets. Commodity prices across MPHC's portfolio continued the downward trajectory seen earlier in the year, reversing the elevated levels of the past two years. Softer demand, increased supply from new capacity additions, and macroeconomic uncertainty led to margin compression and more cautious purchasing behaviour. Despite the challenging market backdrop, MPHC maintained strong and adaptive operations. Production volumes improved year-on-year, supported by enhanced plant reliability and operational efficiencies. Quarter-on-quarter, output increased, particularly in the petrochemical segment, leading to higher sales volumes. The improved selling prices in this segment offset weaker performance in the chlor-alkali segment, which was hit by subdued demand for products such as EDC and VCM due to a slowdown in construction and industrial activity, along with high global inventories. MPHC closed the period with QR3.2 billion in cash and bank balances, reflecting a robust liquidity position. The decline from previous levels was mainly due to the distribution of the 2024 final dividend and funding for the Group's PVC project, partially offset by strong cash flow generation during the period. Management remains focused on operational efficiency and cost optimisation to mitigate the impact of global market challenges. The Group will also continue its investment in strategic projects, including the PVC plant, to diversify its portfolio and enhance long-term growth prospects. MPHC will host an investor relations earnings call on 18 August 2025 at 1:30 p.m. Doha time to discuss its results, business outlook, and other matters. The accompanying investor presentation will be available on the company's website under the 'financial information' section.
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