Qurain Petrochemical Industries KSCP: Analysts Conference Transcript


Qurain Petrochemical Industries Company KSC (Public)

Thursday, November 10, 2022 – 2:30 p.m. (KWT UTC+03:00)

Call for results 1H 2022-23

Qurain Petrochemical Industries Company (QPIC)

Transcript of Earnings Call for the first half ended September 30, 2022 of fiscal year 2022-2023 (1H FY2022/2023)

modified script

occurred on Thursday, November 10e2022 at 2:30 p.m. (Kuwait time) (UTC +03:00)

QPIC attendees:

  • Tanweer A. Khalfaychief financial officer (CFO)
  • Mickey Zachary, Chief Investment Officer (CIO)
  • Abdulhamid N. MalhasInvestment & Communication Manager

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Qurain Petrochemical Industries Company KSC (Public)

Thursday, November 10, 2022 – 2:30 p.m. (KWT UTC+03:00)

Call for results 1H 2022-23

Abdulhameed Malhas:

Good afternoon, ladies and gentlemen, and thank you for joining us today for the Qurain Petrochemicals Industries Company (QPIC) webinar for the first half ended September 30, 2022 of fiscal year 2022-2023.

Meet Abdulhameed Malhas, QPIC’s Director of Investments and Communications. I have with me on the call today my two colleagues: Mr. Tanweer Khalfay, Chief Financial Officer (CFO), and Mr. Mickey Zacharia, Chief Investment Officer (CIO).

We will cover in our presentation today the highlights of the announced period, then we will follow with a question and answer session to answer all your questions.

Before continuing, I would like to draw your attention to disclaimer on page two of the shared presentation. This webinar and its presentation do not in any way constitute an invitation or an offer to subscribe or to trade in any security whatsoever.

All forward-looking statements that may arise during this call are made to the best of our current knowledge and assumptions. Results, performance and future events may always differ from those described during the webinar.

And now I’m going to turn the call over to Tanweer to start the presentation. Tanweer,

please go ahead.

Financial Highlights

Tanweer Khalfay: Thank you Abdulhamid. Good afternoon, everyone.

We are pleased to present to you the financial results for the first half ended September 30, 2022 of the 2022-2023 fiscal year.

QPIC got a net revenue of KD 15.81 million for the first half ended September 30, 2022, compared to KD 3.35 million for the same period last year, an increase of KD 12.46 million or 372%. Earnings per share (EPS) for this period was therefore 14.72 fils per share compared to 3.27 fils per share last year.

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Qurain Petrochemical Industries Company KSC (Public)

Thursday, November 10, 2022 – 2:30 p.m. (KWT UTC+03:00)

Call for results 1H 2022-23

Tanweer Khalfay: The first half of the year saw an increase turnover of our subsidiaries by 145 million KD against 111 million KD for the same period of the previous year, resulting in an increase of 34.5 million KD, or 31%.

This is mainly due to increased sales revenue from our main subsidiary, Saudia Dairy & Foodstuff Company (SADAFCO). The increase in sales revenue led to an increase in gross margin for the period amounting to KD 12.56 million, or 40% compared to the same period last year.

Dividends, interest and other income increased from KD 31,000 in the same period last year to KD 7.65 million in the first half of this year, mainly due to the receipt of an interim dividend from EQUATE Group this year.

The share of results of associated companies increased from KD 2.03 million for the same period last year to KD 5.02 million in the current year, an increase of KD 2.98 million or 146%, due to the increase in the profit share of Kuwait Aromatics Company (KARO) and the inclusion of a net profit share of Advanced Technology Company (ATC) this year.

General and Administrative (G&A) expenditure increased from KD 12.72 million in the same period last year to KD 13.81 million in the current year, an increase of KD 1.09 million or 9% , mainly due to the increase in G&A expenses of our subsidiaries.

Financial expenses increased by 585% or KD 5.13 million, partly due to rising global interest rates. Also included in financial charges is the cost of a put option granted by our subsidiary, SADAFCO.

With that, I conclude the section on financial highlights.

Abdulhameed Malhas: Thank you Tanweer. With that, we conclude our management presentation for today’s webinar.

We are happy to receive your questions now. If you have any questions, please use the raise your handfunction and I’ll open the mic for you, or type them into the question and answer box and I’ll be happy to read them for you.

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Qurain Petrochemical Industries Company KSC (Public)

Thursday, November 10, 2022 – 2:30 p.m. (KWT UTC+03:00)

Call for results 1H 2022-23

Questions and answers

There doesn’t seem to be any questions at this time. As a reminder, ladies and gentlemen, you can use the dedicated functions to ask your questions…

We don’t have any questions, so we’ll move on to closing remarks.

Final remarks

Abdulhameed Malhas:

Ladies and gentlemen, this concludes our call for today.

On behalf of Qurain Petrochemical Industries, I would like to thank everyone for joining us today.

The presentation material has already been uploaded to our website and a transcript of the call will be uploaded to our website as well as to Boursa Kuwait within three working days.

If you have any other questions to ask later, do not hesitate to contact us through the dedicated section of the website.

You can log out now. Thanks.

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