Mesaieed Petrochemical Holding Company Q.s.c. · QSE:MPHC
Mesaieed Petrochemical Holding Company Q.s.c — Mesaieed Petrochemical Holding Company — Q4 2020 Earnings Presentation
40 slides from Mesaieed Petrochemical Holding Company Q.s.c's earnings presentation, Dec 31, 2020
Slide 1: Mesaieed Petrochemical Holding Company IR Presentation
Mesaieed Petrochemical Holding Company IR Presentation 31 December 2020 “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
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 Petrochemical Holding Company Q.P.S.C. This prese
Slide 3: Table of Content
Table of Content 1. About MPHC 2. Ownership Structure 3. Board of Directors 4. Competitive advantages 5. Results at a Glance (2015 – 2020) 6. Results at a Glance (For year ended 31 December 2020) 7. Dividends and market statistics 8. Segmental details 9. CAPEX (2021 – 2025) 10. Optimization updates
Slide 4: About MPHC
About MPHC 4
Slide 5: About MPHC
About MPHC Mesaieed Petrochemical Holding Company Through its group companies, MPHC Q.P.S.C. (“MPHC” or “the group”; QE ticker: operates in 2 business segments - MPHC) was incorporated on May 29, 2013 and Petrochemical (Q-Chem / Q-Chem II) was listed on the Qatar Stock Exchange on and Chlor-Alka
Slide 6: Ownership Structure
Ownership Structure ~65.4% Qatar Petroleum ~34.6% Free Float MPHC Q-Chem Q-Chem II QVC 49% (JV) 49% (JV) 55.2% (JV) Q-Chem Q-Chem II Ras Laffan Distribution Distribution Olefins Company Company Company (100% Q-Chem) (100% Q-Chem II) (53.31%) 6 Mesaieed Petrochemical Holding Company, IR Presentation,
Slide 7: Board of Directors
Board of Directors Mr. Ahmad Saif Al Sulaiti Chairman Mr. Mohamed Salem Alyan Almarri Mr. Abdulrahman Ahmad Al Shaibi Vice Chairman Member Mr. Abdulaziz Mohammed Al Mannai Mr. Abdulaziz Jassim Mohd Al Muftah Member Member Mr. Ali Nasser Telfat Mr. Mohammed Essa Al-Mannai Member Member 7 Mesaieed Pet
Slide 8: Competitive Advantages
Competitive Advantages • Assured feedstock supply. • Solid liquidity position. • Economies of scale. • Cash flow generation even • Synergy benefits. under stressed conditions. • Operationally diversified. • Sound dividend record. • Stable EBITDA margin. Strong Low cost Financial producer Position Ex
Slide 9: Results at glance (2015 to 2020)
Results at glance (2015 to 2020) 9
Slide 10: Results at a glance (2015 to 2020)
Results at a glance (2015 to 2020) Production (MT’000) Utilization (%) Production and sales volumes remained relatively stable since the incorporation of MPHC ▪ Utilization moved in line with the production levels ▪ Selling prices reflected cyclical movements inline with the global commodity prices
Slide 11: Results at a glance (2015 to 2020)
Results at a glance (2015 to 2020) Revenue (Million QR) Net Profit (Million QR) In line with product prices, both revenue and net profit witnessed movements ▪ Total assets grew marginally, while the cash and cash equivalents increased over the period Total Assets (Million QR) MPHC Head office Cash &
Slide 12: Results at glance (For the year ended 31 December 2020)
Results at glance (For the year ended 31 December 2020) 12
Slide 13: Key Highlights
Key Highlights For the year ended 31 December 2020 (MPHC Share) Production (MT’000) • Production down on last year due to the planned maintenance shutdowns. • Production volumes improved significantly in Q4-20 vs Q3-20, with no major shutdowns reported in Q4-20. • Major shutdowns were mainly conduct
Slide 14: Key Highlights
Key Highlights For the year ended 31 December 2020 (MPHC Share) Revenue (QR million) • 2020 Group revenue down significantly on last year driven by lower prices and lower sales volumes. • Q4-20 revenue up on Q3-20 by 34%, on account of improved sales volumes and recoveries noted in selling price. MP
Slide 15: Net Profit Variance Analysis
Net Profit Variance Analysis QR ‘millions Restated Profitability impacted due to: Unfavorable variance • Reduced selling prices 12% and sales volumes 5%; • Unfavorable inventory differential due to huge inventory drawdowns on account of turnarounds and shutdowns; • Other negative variance arising pr
Slide 16: MPHC operating rates remained stable
MPHC operating rates remained stable Despite the adverse macroeconomic conditions, operating rates of MPHC segments remained stable 120% 115% 109% 108% 104% 104% 102% 102% 101% 96% 93% 92% 90% 90% 85% 85% 84% 81% 75% 75% 70% 64% 63% 57% Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Petrochemicals
Slide 17: Geographic analysis – MPHC Group revenue
Geographic analysis – MPHC Group revenue Asia remained the Group’s largest market, while its presence in Indian sub- continent and Europe continued to be substantial Europe 22% Qatar Middle East 3% Asia 3% 36% Africa Indian sub-continent 6% 30% 17 Mesaieed Petrochemical Holding Company, IR Presentat
Slide 18: Dividends & Market Statistics
Dividends & Market Statistics 18
Slide 19: Dividends & Market Statistics (2013 - 2020)
Dividends & Market Statistics (2013 - 2020) Payout Ratio (%) Dividend per share 94% 0.12 77% 100% 72% 81% 76% 81% 0.1 72% 74% 80% 0.08 60% 0.06 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* Market Capitalization (QR billion) 31.6 37.1 24.4 25
Slide 20: Segment Details
Segment Details 20
Slide 21: Segmental Details: Petrochemicals
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 QP; Q-Chem II also has an effective ownership of 53.85% in Ras Laffan Olefins Company Limited which owns an ethane cracker which prov
Slide 22: Segmental Details: Petrochemicals
Analysis of production & Segmental Details: Petrochemicals selling prices Production: Production down by 11% as compared to 2019, affected by maintenance shutdowns; Production increased during the Q4-20 by 6% compared to Q3-20, due to operating rates in Q4-20. Selling Prices: Declined as compa
Slide 23: Segmental Details: Petrochemicals
Segmental Details: Petrochemicals Analysis of segment revenue & net profit Revenue: QR 1.8 billion, down by 19% as compared to 2019 due to lowered product prices against a backdrop of challenging macroeconomic conditions and decline in sales volumes due to reduced production volumes, amid planned
Slide 24: Segmental Details: Petrochemicals
Geographical analysis of Segmental Details: Petrochemicals segment revenue Asia remains a main market for Petrochemical segment Europe and Indian sub-continent remains other key markets 2020 Segment Revenue (%) 2019 Segment Revenue (%) 3% 3% 2% 3% 7% 7% 42% 45% 28% 31% 14% 15% Asia Africa Indian
Slide 25: Segmental Details: Petrochemical Key segment products analysis
Segmental Details: Petrochemical Key segment products analysis HDPE Sales Volumes (MT ‘000) (contributed ~70% of the segment revenue in 2020) Selling price ($/MT) 1,005 1,008 925 906 817 773 718 832 114 115 111 112 88 97 109 133 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 NAO (contributed ~24% o
Slide 26: Segmental Details: Chlor-Alkali
Segmental Details: Chlor-Alkali Qatar Vinyl Company Limited Q.S.C. (“QVC”) is owned 55.2% by MPHC, 31.9% by Qapco and 12.9% by QP; QVC’s operations have been integrated with Qapco, bringing additional synergies to the group. The segment is engaged in the production of a range of chlor-alkali p
Slide 27: Segmental Details: Chlor-Alkali
Analysis of production & Segmental Details: Chlor-Alkali selling prices Production: Production down by 6% as compared to 2019, affected by turnarounds and maintenance shutdowns; Production improved during the Q4-20 by 11% compared to Q3-20, due to better operating rates. Selling Prices: Declin
Slide 28: Segmental Details: Chlor-Alkali
Segmental Details: Chlor-Alkali Analysis of segment revenue & net profit Revenue: QR 617 million, down by 9% as compared to 2019 due to lower product prices and sales volumes; Revenue for Q4-20, up by 65% compared to Q3-20 on the back of improved in sales volumes (+28%) and selling prices (+29%)
Slide 29: Segmental Details: Chlor-Alkali
Geographical analysis of Segmental Details: Chlor-Alkali segment revenue Indian sub-continent and Asia remains a main market for Chlor-Alkali segment 2020 Segment Revenue (%) 2019 Segment Revenue (%) 2% 2% 2% 4% 2% 4% 1% 18% 16% 76% 74% Asia Africa Indian sub-continent Middle East Europe Qatar 29
Slide 30: Segmental Details: Chlor-Alkali Key segment products analysis
Segmental Details: Chlor-Alkali Key segment products analysis Vinyl Chloride Monomer (VCM) Sales Volumes (MT ‘000) Selling price ($/MT) (contributed ~68% of the segment revenue in 2020) 891 715 672 691 699 715 601 448 47 33 33 46 39 30 47 56 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Caustic So
Slide 31: CAPEX (2021 – 2025)
CAPEX (2021 – 2025) 31
Slide 32: CAPEX (2021 - 2025) – MPHC share
CAPEX (2021 - 2025) – MPHC share o Cumulative CAPEX spend of QR 1.1 billion CAPITAL EXPENDITURE (in QR Million) across all segments during 2021-2025; 2021 2022 2023 2024 2025 New o QChem/QChem II Furnance 59.9 41.0 26.8 - - • CAPEX of QR 879 million planned during NAO Tanks upgrade 9.1 5.5 12.1 10.7
Slide 33: Optimization updates
Optimization updates 33 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 33
Slide 34: Optimization updates
Optimization updates • Given the current difficult market and macroeconomic outlook, the Group has further strengthen on its optimization initiatives to withstand the Group against external pressures and decisions were made to optimize cost; • Major areas focused by the Group companies includes: • M
Slide 35: Governance Structure
Governance Structure 35
Slide 36: Governance
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 Shareholder, which is Qatar Petroleum. QP app
Slide 37: Governance
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 receive dividends, members. The policy has f
Slide 38: Sales and Marketing
Sales and Marketing 38 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 38
Slide 39: Sales and Marketing
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 petrochemical regulated products. • Both
Slide 40: For further information, Mesaieed Petrochemical Holding Company can be contacted
For further information, Mesaieed Petrochemical Holding Company can be contacted as follows: Telephone: (+974) 4013 2080 Fax: (+974) 4013 9750 Email: mphc.investorrelations@qp.com.qa or mphc@qp.com.qa Address: PO Box 3212, Doha, State of Qatar Please refer to www.mphc.com.qa for the latest informati
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