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UIC Shafafiyah (Transparency) Investor's Forum 2013

UIC's 2013 Shafafiyah (Transparency) presentation was released on March 9th, 2013. It has a review of last year and financial guidance for this year to shareholders, partners, financial analysts and institutional investors.

Click here to download an English copy of UIC 2013 Investor presentation.

Qurain Petrochemical Industries
 
 

UIC's strategy is based on diversifying investments in promising industrial sectors, locally and regionally. The company constantly develops available operational investment opportunities in line with UIC's long- term investment plan. Al Qurain Petrochemical Industries Company is a pioneer in the petrochemical industry, and is one of UIC's most important investments. Al Qurain also enjoys liquidity and a solid solvency base, as well as other competitive factors that qualify the company for future opportunities in this sector.

Al Qurain's investment base is focused on a series of premium investments, it holds 6% stake in EQUATE Petrochemical Company, which is a one of the leading companies in the Middle East. EQUATE commenced commercial production in 1997 and has made astounding results year after year. Al Qurain also holds 6% percent stake in Kuwait Olefins Company, which is another promising company in the petrochemical sector that commenced commercial production in 2009 and has made significant profits. Furthermore, Al Qurain holds 20% stake in Kuwait Aromatics Company, which in turn holds 57.5% of Kuwait Styrene Company and 100% of Kuwait Paraxylene Production Company. Al Qurain also holds a 41.5% in United Oil Projects, which is currently establishing the GC-16 project in partnership with Al- Khorayef Company from Saudi Arabia. All indications point to good prospects for Al Qurain's projects in the upcoming period

Project management efforts throughout the year focused on monitoring existing investments, especially Kuwait Aromatics Company. Commercial operation for this project commenced in early 2010, and recorded negative results that Al Qurain had to bear a percentage of. The management also continued to seek and evaluate available investment opportunities in line with the company's long-term investment strategy, taking into account the importance of diversifying investments across several petrochemical sectors in order to cover a larger area and to benefit from geographic expansion opportunities. Al-Qurain is actively looking for new investment opportunities within the Gulf and Middle east in co-operation with world leading investment banks and consultants.

The price of polyethylene witnessed additional increase in 2011, which is positively impacting the performance of EQUATE and The Kuwait Olefins Company. In turn, this will definitely have a positive impact on Al Qurain's results in the coming year.

Financial Highlights

Al Qurain's incurred a loss of KD 1.9 million in 2010 compared to a profit of KD 7.1 million in 2009. Cash dividends received from EQUATE dropped 35% to KD 7.5 million due to the reduction in the company's revenues during the year. Al Qurain's share of losses from associate companies increased 72% to KD 9 million. This sharp increase in loss is mainly attributed to operational startup costs the subsidiaries Kuwait Aromatics Company had to bear because of the increase in cost of raw materials (feedstock) from Kuwait National Petroleum Company and the international drop in the price of paraxylene, which squeezed the gap between them. This is besides the cost overrun of constructing a paraxylene plant,However, in its first Quarter of 2011 Al-Qurain recorded an earnings of KD 18.16 million and expected to continue through to the end of year.