Mesaieed Petrochemical Holding Company Q.s.c. · QSE:MPHC
Mesaieed Petrochemical Holding Company Q.s.c — Mesaieed Petrochemical Holding Company — FY2023 Earnings Presentation
45 slides from Mesaieed Petrochemical Holding Company Q.s.c's earnings presentation, February 2024
Slide 1: Mesaieed Petrochemical Holding Company IR Presentation
CLASSIFICATION: C0 - NON-CONFIDENTIAL Mesaieed Petrochemical Holding Company IR Presentation 31 December 2023 “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 year ended 31 Dec. 2023) 6. Segmental results (For the year ended 31 Dec. 2023) 7. CAPEX (2024F – 2028F) 8. Dividends and market ca
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: 21.7% Petrochemical Petrochemical and Chlor-Alkali; 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 #98 among “2023 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 66.8 Peer 1 905 25% Peer 2 21.7 Peer 2 706 16% Net profit margin (%) Peer 3 20.6 Peer 3 271 18% Peer 4 6.7 MPHC 233 37% MPHC 6.2 MPHC ranks #5 Peer 4 40 8%
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) 1250 • The petrochemical sector faced 1150 challenges in the past year, influenced by a sluggish global economic recovery, 1050 fluctuating oil prices, and uncertain 950 global macro-outlook. Buyer caution 85
Slide 13: MPHC results (For the year ended December 2023)
CLASSIFICATION: C0 - NON-CONFIDENTIAL MPHC results (For the year ended 31 December 2023) 13
Slide 14: YE-23 results at a Glance vs. YE-22
CLASSIFICATION: C0 - NON-CONFIDENTIAL YE-23 results at a Glance vs.YE-22 Revenue -21% EBITDA -30% Net profit -39% QR 3.1 billion QR 1.5 billion QR 1.1 billion EBITDA Margin: 49% EPS: QR 0.086 ▪ Continued macroeconomic challenges are weighing down on commodity prices, directly affecting the financial
Slide 15: Operational performance review
CLASSIFICATION: C0 - NON-CONFIDENTIAL Operational performance review • YE-23 vs YE-22: production for YE-23 remained at par Production (MT’ 000) compared to last year. • 4Q-23 vs 3Q-23: On a quarter-on-quarter basis production volumes for 4Q-23 decreased by 4% in comparison to 3Q-23, mainly due to d
Slide 16: Financial performance review
CLASSIFICATION: C0 - NON-CONFIDENTIAL Financial performance review Revenue (QR’ million) • YE-23 vs YE-22: revenue declined versus YE-22, mainly due to lowered selling prices coupled with slight decline in sales volumes. • 4Q-23 vs 3Q-23: revenue increased on a quarter-on- quarter basis, due to high
Slide 17: Net Profit Variance Analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Net Profit Variance Analysis QR ‘millions Net profits decreased by QR 684 million (-39%) due to: Unfavorable variance • Lowered average realized blended selling prices (-19%); • Lower sales volumes (-2%); Favorable variance • Lower variable costs; • Favorable in
Slide 18: MPHC operating rates
CLASSIFICATION: C0 - NON-CONFIDENTIAL MPHC operating rates Operating rates of MPHC segments remained stable 116% 116% 115% 112% 112% 111% 111% 111% 110% 110% 110% 109% 109% 109% 105% 105% 104% 104% 104% 103% 102% 99% 99% 99% 98% 97% 97% 96% 93% 91% 90% 87% 87% 85% 85% 85% 83% 83% 81% 80% 78% 78% 75%
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 26% Qatar Middle East 3% Asia, ex. ISC North America 8% 26% 1% Africa Indian sub-continent 8% 28% 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 resilient 150 61% 65% 61% 130 58% 60% Oil price (USD/bbl), brent 55% 56% MPHC EBITDA Margins (%) 54% 55% 55% 110 50% 52% 52% 48% 49% 50% 90 47% 44% 45
Slide 21: Segmental results (For the year ended December 2023)
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental results (For the year ended 31 December 2023) 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 up by 8% compared to YE-22, as the segment carried out a planned periodic largescale turnaround at Q-Chem facilities during 1Q-22, which affected the overall produ
Slide 24: Segmental Details: Petrochemicals
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemicals Analysis of segment revenue & net profit ▪ Revenue: QR 2.4 billion down by 11% as compared to YE-22, due to lower selling prices (-15%) partially offset by higher sales volumes (+5%); ▪ Q4-23 revenue increased by (+5%) inline wi
Slide 25: Segmental Details: Petrochemicals – Geographical analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographical analysis of Segmental Details: Petrochemicals segment revenue ▪ Asia & Europe remains a main market for Petrochemical segment YE-23 Segment Revenue (%) YE-22 Segment Revenue (%) 3% 1% 4% 4% 6% 9% 8% 32% 39% 9% 32% 15% 19% 19% Asia, excl. ISC Africa
Slide 26: Segmental Details: Petrochemical Key segment products analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemical Key segment products analysis HDPE (contributed ~64% of the segment revenue in 4Q-23) 1,301 1,134 1,164 1,178 1,278 773 718 832 906 1,070 1,022 908 970 1,024 904 966 88 97 109 133 110 109 119 119 79 106 115 121 102 112 112 111 NA
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 decreased by 11% as compared to YE-22, as production during 1Q-23 was impacted by planned turnaround carried out at chlor-alkali facilities; ▪ Production slightly im
Slide 29: Segmental Details: Chlor-Alkali
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Analysis of segment revenue & net profit ▪ Revenue: QR 674 million, down by 44% as compared to YE-22, mainly due to lower sales volumes (-12%), amid lower production, along with significantly lower selling prices (-36%); ▪ Revenue
Slide 30: Segmental Details: Chlor-Alkali – Geographical analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographical analysis of Segmental Details: Chlor-Alkali segment revenue ▪ Indian sub-continent remain a main market for Chlor-Alkali segment YE-23 Segment Revenue (%) YE-22 Segment Revenue (%) 4% 3% 8% 4% 2% 24% 23% 3% 3% 3% 59% 63% 1% Asia, excl. ISC Africa Am
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 ~33% of the segment revenue in 4Q-23) 1,108 1,122 1,132 1,207 1,224 1,078 891 715 601 697 618 665 590 632 605 448 39 30 47 56 53 46 58 18 45 50 51 34 30 37 45
Slide 32: CAPEX (2024F – 2028F)
CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2024F – 2028F) 32
Slide 33: CAPEX (2024F – 2028F) – MPHC share
CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2024F – 2028F) – MPHC share o Cumulative CAPEX spend of QR 2.1 billion CAPITAL EXPENDITURE - MPHC SHARE (Amount in QAR million) across all segments during 2024-2028; o QChem/QChem II Project name Category 2024 2025 2026 2027 2028 • CAPEX of QR 1.3 billion
Slide 34: New PVC Project & QVC restructuring
CLASSIFICATION: C0 - NON-CONFIDENTIAL New PVC Project & QVC restructuring Key Highlights of New PVC project First PVC plant in the State of Qatar Nameplate EPC awarded Project fully Construction Source feedstock MPHC will capacity of valued at (i.e., Vinyl fund 55.2% of integrated expected to Chlori
Slide 35: Dividends & Market Capitalization
CLASSIFICATION: C0 - NON-CONFIDENTIAL Dividends & Market Capitalization 35
Slide 36: Dividends & Market Statistics
CLASSIFICATION: C0 - NON-CONFIDENTIAL Dividends & Market Statistics Payout Ratio (%) Dividend per share 74% 78% 100% 0.12 120% 0.1 77% 74% 94% 100% 72% 81% 76% 81% 72% 0.08 80% 0.06 0.11 0.11 0.11 60% 0.04 0.086 40% 0.07 0.06 0.07 0.08 0.07 0.02 0.04 0.04 20% 0 0% 2013 2014 2015 2016 2017 2018 2019
Slide 37: Historical performance (2018 – 2023)
CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2018 – 2023) 37
Slide 38: Historical performance (2018 – 2023)
CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2018 – 2023) 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 39: Historical performance (2018 – 2023)
CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2018 – 2023) 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 40: Governance Structure
CLASSIFICATION: C0 - NON-CONFIDENTIAL Governance Structure 40
Slide 41: 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 42: 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 43: Sales and Marketing
CLASSIFICATION: C0 - NON-CONFIDENTIAL Sales and Marketing 43 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 43
Slide 44: 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 45: 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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