Mesaieed Petrochemical Holding Company Q.s.c. · QSE:MPHC
Mesaieed Petrochemical Holding Company Q.s.c — Mesaieed Petrochemical Holding Company — H1 2022 Earnings Presentation
44 slides from Mesaieed Petrochemical Holding Company Q.s.c's earnings presentation, Jun 30, 2022
Slide 1: Mesaieed Petrochemical Holding Company IR Presentation
CLASSIFICATION: C0 - NON-CONFIDENTIAL Mesaieed Petrochemical Holding Company IR Presentation 30 June 2022 “one of the region’s premier diversified petrochemical conglomerates with interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products.”
Slide 2: Disclaimer
CLASSIFICATION: C0 - NON-CONFIDENTIAL Disclaimer The companies in which Mesaieed Petrochemical Holding Company Q.P.S.C. directly and indirectly owns investments are separate entities. In this presentation, “MPHC” and “the group” are sometimes used for convenience in reference to Mesaieed Petrochemic
Slide 3: Table of Content
CLASSIFICATION: C0 - NON-CONFIDENTIAL Table of Content 1. About MPHC 2. Competitive strengths 3. Regional peers review 4. Macroeconomic updates 5. MPHC results (For the six-month period ended 30 June 2022) 6. Segment results (For the six-month period ended 30 June 2022) 7. CAPEX (2022F – 2026F) 8. D
Slide 4: About MPHC
CLASSIFICATION: C0 - NON-CONFIDENTIAL About MPHC 4
Slide 5: MPHC at a glance
CLASSIFICATION: C0 - NON-CONFIDENTIAL MPHC at a glance Overview • Mesaieed Petrochemical Holding Company • QatarEnergy provides most head office Q.P.S.C. (“MPHC” or “the Group”; QE ticker: functions through a comprehensive service- MPHC) was incorporated on May 29, 2013 and level agreement. was list
Slide 6: MPHC business segments at a glance
CLASSIFICATION: C0 - NON-CONFIDENTIAL MPHC business segments at a glance Business segments overview Segments size by Revenue • Through its joint ventures companies, MPHC operates in two distinct business segments: Petrochemical Petrochemical and Chlor-Alkali; 34.3% Chlor-Alkali • Production faciliti
Slide 7: Competitive strengths
CLASSIFICATION: C0 - NON-CONFIDENTIAL Competitive strengths 7
Slide 8: Competitive strengths
CLASSIFICATION: C0 - NON-CONFIDENTIAL Competitive strengths • Assured feedstock supply Low cost • Economies of scale and operationally diversified producer • Synergy benefits Strong • Solid liquidity position financial • Strong cash flow generation with stable EBITDA margins position • Sound dividen
Slide 9: Regional peers review
CLASSIFICATION: C0 - NON-CONFIDENTIAL Regional peers review MPHC ranked #80 among “2022 Forbes List of Top 100 Listed Companies in the Middle East” 9
Slide 10: Competitive positioning versus regional peers
CLASSIFICATION: C0 - NON-CONFIDENTIAL Competitive positioning versus regional peers Market Cap. (USD’ billion) Net profit (USD’ million) Peer 1 81.3 Peer 1 1,726 12% Peer 2 26.5 Peer 2 743 38% Net profit margin (%) Peer 3 24.0 Peer 3 336 25% Peer 4 9.8 Peer 4 288 45% MPHC 8.6 MPHC ranks #5 MPHC 122
Slide 11: Macroeconomic updates
CLASSIFICATION: C0 - NON-CONFIDENTIAL Macroeconomic updates 11
Slide 12: Macroeconomic updates
CLASSIFICATION: C0 - NON-CONFIDENTIAL Macroeconomic updates Petrochemicals 1350 HDPE ($/MT) • Prices for PE slightly inched downward during earlier 1250 part of 2022, as buyers remained cautious coupled with 1150 seasonal effects, mainly during early parts of the year. However, price trajectories st
Slide 13: MPHC results
CLASSIFICATION: C0 - NON-CONFIDENTIAL MPHC results (For the six-month period ended 30 June 2022) 13
Slide 14: 1H-22 results at a Glance
CLASSIFICATION: C0 - NON-CONFIDENTIAL 1H-22 results at a Glance Growth vs. 1H-21 Revenue 10% EBITDA 12% Net profit 14% QR 2.1 billion QR 1.2 billion QR 1.0 billion EBITDA Margin: 58.9% EPS: QR 0.083 RoAE: 12.2% • Results reflected constructive product price momentum • Robust liquidity position with
Slide 15: Operational performance review
CLASSIFICATION: C0 - NON-CONFIDENTIAL Operational performance review Production (MT’ 000) • 1H-22 vs 1H-21: production volumes declined on a year-on- year basis, mainly due to a largescale turnaround carried out at Q-Chem facilities during 1Q-22. • 2Q-22 vs 1Q-22: Production volumes increased on a q
Slide 16: Financial performance review
CLASSIFICATION: C0 - NON-CONFIDENTIAL Financial performance review Revenue (QR’ million) • 1H-22 vs 1H-21: revenue improved by 10% mainly due to higher selling prices, partially offset by lowered sales volumes. • 2Q-22 vs 1Q-22: revenue increased by 17% on a quarter-on-quarter basis, with higher sal
Slide 17: Net Profit Variance Analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Net Profit Variance Analysis QR ‘millions Net profits increased by QR 129 million due to: Favorable variance • Higher selling prices 18%; Unfavorable variance • Lesser sales volumes 7%; • Slightly higher variable costs on account of higher prices partially offse
Slide 18: MPHC operating rates
CLASSIFICATION: C0 - NON-CONFIDENTIAL MPHC operating rates Operating rates of MPHC segments remained stable 120% 116% 115% 112% 111% 111% 110% 109% 109% 109% 105% 105% 104% 104% 102% 102% 98% 97% 96% 93% 91% 90% 90% 87% 85% 85% 85% 81% 80% 78% 75% 75% 70% 64% 57% 41% 3Q-19 4Q-19 1Q-20 2Q-20 3Q-20 4Q
Slide 19: Geographic analysis – MPHC Group revenue
CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographic analysis – MPHC Group revenue Asia including ISC remained MPHC’s largest market, while its presence in Europe continued to be substantial Europe 24% Qatar North America Middle East 3% Asia, ex. ISC 3% 9% 24% Africa Indian sub-continent 6% 31% 19 Mesai
Slide 20: Robust EBITDA margins
CLASSIFICATION: C0 - NON-CONFIDENTIAL Robust EBITDA margins Despite the volatile trends in commodity prices, MPHC’s EBITDA margins continue to remain robust 150 61% 61% 65% 58% 60% 130 55% 56% Oil price (USD/bbl), brent 54% MPHC EBITDA Margins (%) 55% 110 50% 47% 50% 90 45% 70 38% 40% 35% 50 29% 30%
Slide 21: Segmental results
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental results (For the six-month period ended 30 June 2022) 21
Slide 22: Segmental Details: Petrochemicals
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemicals ▪ Q-Chem and Q-Chem II are both owned 49% by MPHC, 49% by Chevron Phillips Chemical International Qatar Holdings L.L.C., and 2% by QatarEnergy; ▪ Q-Chem II also has an effective ownership of 53.85% in Ras Laffan Olefins Company
Slide 23: Segmental Details: Petrochemicals
CLASSIFICATION: C0 - NON-CONFIDENTIAL Analysis of production & Segmental Details: Petrochemicals selling prices ▪ Production: Production down by 13% compared to 1H-21, as the segment had a planned periodic largescale turnaround at Q-Chem facilities during 1Q-22, which affected the overall operating
Slide 24: Segmental Details: Petrochemicals
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemicals Analysis of segment revenue & net profit ▪ Revenue: QR 1.4 billion, up by 1% as compared to 1H-21 as lower sales volumes (-12%) mostly offset the positive impacts of higher selling prices (+14%); ▪ 2Q-22 revenue significantly up
Slide 25: Segmental Details: Petrochemicals
CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographical analysis of Segmental Details: Petrochemicals segment revenue ▪ Asia remains a main market for Petrochemical segment ▪ Europe and Indian sub-continent remain other key markets 1H-22 Segment Revenue (%) 1H-21 Segment Revenue (%) 4% 5% 4% 2% 8% 9% 35%
Slide 26: Segmental Details: Petrochemical Key segment products analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemical Key segment products analysis HDPE (contributed ~61% of the segment revenue in 1H-22) 1,301 1,164 1,178 1,278 1,070 1,134 773 832 906 718 88 97 109 133 110 109 119 119 79 106 1Q-20 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22
Slide 27: Segmental Details: Chlor-Alkali
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali ▪ Qatar Vinyl Company Limited Q.S.C. (“QVC”) is owned 55.2% by MPHC, 31.9% by Qapco and 12.9% by QatarEnergy; ▪ QVC’s operations have been integrated with Qapco, bringing additional synergies to the group. ▪ The segment is engaged
Slide 28: Segmental Details: Chlor-Alkali
CLASSIFICATION: C0 - NON-CONFIDENTIAL Analysis of production & Segmental Details: Chlor-Alkali selling prices ▪ Production: Production increased by 2% as compared to 1H-21; ▪ Production increased during 2Q-22 by 9% compared to 1Q-22, mainly due to better plant operating rates achieved during 2Q-22.
Slide 29: Segmental Details: Chlor-Alkali
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Analysis of segment revenue & net profit ▪ Revenue: QR 723 million, up by 32% as compared to 1H-21 due to higher product prices (+32%), while sales volumes remained flat on a year-on-year basis; ▪ Revenue for 2Q-22 declined by 8%
Slide 30: Segmental Details: Chlor-Alkali
CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographical analysis of Segmental Details: Chlor-Alkali segment revenue ▪ Indian sub-continent remain a main market for Chlor-Alkali segment 1H-22 Segment Revenue (%) 1H-21 Segment Revenue (%) 8% 3% 2% 1% 7% 5% 1% 4% 1% 19% 4% 1% 64% 80% Asia, excl. ISC Africa
Slide 31: Segmental Details: Chlor-Alkali Key segment products analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Key segment products analysis Vinyl Chloride Monomer (VCM) (contributed ~41% of the segment revenue in 1H-22) 1,108 1,122 1,132 1,207 1,224 1,078 891 715 601 448 39 30 47 56 53 46 58 18 45 50 1Q-20 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q
Slide 32: CAPEX (2022F – 2026F)
CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2022F – 2026F) 32
Slide 33: CAPEX (2022F – 2026F) – MPHC share
CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2022F – 2026F) – MPHC share o Cumulative CAPEX spend of QR 1.5 billion across CAPITAL EXPENDITURE (Amounts in QAR' millions) all segments during 2022-2026; Project Name Category 2022 2023 2024 2025 2026 Turnaround related Turnaround 141.6 1.8 12.5 44.6 14
Slide 34: Dividends & Market Capitalization
CLASSIFICATION: C0 - NON-CONFIDENTIAL Dividends & Market Capitalization 34
Slide 35: Dividends & Market Statistics
CLASSIFICATION: C0 - NON-CONFIDENTIAL Dividends & Market Statistics Payout Ratio (%) Dividend per share 0.12 77% 94% 74% 100% 81% 76% 81% 72% 74% 0.1 72% 80% 0.08 60% 0.06 0.11 0.11 40% 0.04 0.07 0.07 0.07 0.06 0.08 20% 0.02 0.04 0.04 0 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 Market Capitali
Slide 36: Historical performance (2016 – 2021)
CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2016 – 2021) 36
Slide 37: Historical performance (2016 – 2021)
CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2016 – 2021) Production (MT’000) Utilization (%) Production and sales volumes remained relatively stable ▪ Utilization moved in line with the production levels ▪ Selling prices reflected cyclical movements inline with the global commodity
Slide 38: Historical performance (2016 – 2021)
CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2016 – 2021) Revenue (Million QR) Net Profit (Million QR) Both revenue and net profit witnessed movements, in line with product prices ▪ Total assets grew marginally, while the cash and cash equivalents remained robust Total Assets (Milli
Slide 39: Governance Structure
CLASSIFICATION: C0 - NON-CONFIDENTIAL Governance Structure 39
Slide 40: Governance
CLASSIFICATION: C0 - NON-CONFIDENTIAL Governance Board Structure Board Committees ▪ MPHC Board of Directors consists of seven (7) ▪ The Board of Directors established Board Committees Directors, all of whom were appointed by the Special and Special Committees to carry out specific tasks. The Shareho
Slide 41: Governance
CLASSIFICATION: C0 - NON-CONFIDENTIAL Governance Remuneration • Board of Directors Shareholders rights ▪ The Company has developed a periodically ▪ The Company’s Articles of Associations provide for the rights revisited remuneration policy for Board of shareholders, particularly the rights to receiv
Slide 42: Sales and Marketing
CLASSIFICATION: C0 - NON-CONFIDENTIAL Sales and Marketing 42 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 42
Slide 43: Sales and Marketing
CLASSIFICATION: C0 - NON-CONFIDENTIAL Sales and Marketing • Qatar Chemical and Petrochemical Marketing and Distribution Company (“Muntajat”), a wholly-owned company of the government of the State of Qatar, has the exclusive rights to purchase, market, sell and distribute the State’s production of pe
Slide 44: For further information, Mesaieed Petrochemical Holding Company can be contacted
CLASSIFICATION: C0 - NON-CONFIDENTIAL For further information, Mesaieed Petrochemical Holding Company can be contacted as follows: Telephone: (+974) 4013 2080 Fax: (+974) 4013 9750 Email: mphc.investorrelations@qatarenergy.qa or mphc@qatarenergy.qa Address: PO Box 3212, Doha, State of Qatar Please r
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