Mesaieed Petrochemical Holding Company Q.s.c. · QSE:MPHC
Mesaieed Petrochemical Holding Company Q.s.c — Mesaieed Petrochemical Holding Company — Q1 2020 Earnings Presentation
40 slides from Mesaieed Petrochemical Holding Company Q.s.c's earnings presentation, Mar 31, 2020
Slide 1: Mesaieed Petrochemical Holding Company IR Presentation
Mesaieed Petrochemical Holding Company IR Presentation 31 March 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 – 2019) 6. Results at a Glance (For period ended 31 March 2020) 7. Dividends and market statistics 8. Segmental details 9. CAPEX (2020 – 2024) 10. COVID-19 impact analys
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 65.5% Qatar Petroleum 34.5% 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,Q1
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 2019)
Results at glance (2015 to 2019) 9
Slide 10: Results at a glance (2015 to 2019)
Results at a glance (2015 to 2019) Production (MT’000) Utilization (%) Production remained relatively stable since the incorporation of MPHC ▪ Utilization marginally improved in the backdrop of stable production ▪ Selling prices moved inline with the global commodity prices linked to macro-economic
Slide 11: Results at a glance (2015 to 2019)
Results at a glance (2015 to 2019) 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 period ended March 2020)
Results at glance (For the period ended 31 March 2020) 12
Slide 13: Key Highlights
Key Highlights For period ended 31 March 2020 (MPHC Share) Production (MT’000) Production down on last year due to the planned maintenance shutdowns. Production not affected by COVID-19. Major shutdown include planned shutdowns at: – QChem (11 days); – QChem II (44 days); and – QVC (86 days). Sales
Slide 14: Key Highlights
Key Highlights For period ended 31 March 2020 (MPHC Share) Revenue (QR million) Group revenue down on last year due to the combined effect of reduced selling prices and sales volumes. MPHC’s Net Profit (QR million)1 Results impacted by: • Reduced sales volumes and selling prices • Unfavorable invent
Slide 15: Net Profit Variance Analysis
Net Profit Variance Analysis QR ‘millions Performance lowered by QR 273 million due to: Unfavorable variance • Reduced product prices -18% • Lowered sales volumes -22% • Unfavorable inventory differential due to large inventory drawdowns on account of turnaround and shutdowns. Favorable variance • L
Slide 16: 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 4% Asia 1% 36% Africa Indian sub-continent 4% 33% 16 Mesaieed Petrochemical Holding Company, IR Presentat
Slide 17: Dividends & Market Statistics
Dividends & Market Statistics 17
Slide 18: Dividends & Market Statistics (2013-2019)
Dividends & Market Statistics (2013-2019) Payout Ratio (%) Dividend per share 0.12 85% 0.1 81% 81% 77% 80% 0.08 76% 74% 0.06 72% 0.11 75% 72% 0.04 0.07 0.07 0.07 0.06 0.08 70% 0.02 0.04 0 65% 2013 2014 2015 2016 2017 2018 2019 Market Capitalization (QR billion) 31.6 37.1 32.0 24.4 19.9 15.8 18.9 201
Slide 19: Segment Details
Segment Details 19
Slide 20: Segmental Details: Petrochemical
Segmental Details: Petrochemical 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 provi
Slide 21: Segmental Details: Petrochemical
Analysis of production & Segmental Details: Petrochemical selling prices Production: Production down by 35% as compared to Q1-19, affected by maintenance shutdowns; Production decreased during the Q1-20 by 42% compared to Q4-19, due to planned maintenance shutdowns. Selling Prices: Declined as
Slide 22: Segmental Details: Petrochemical
Segmental Details: Petrochemical Analysis of segment revenue & net profit Revenue: QR 367 million, down by 38% as compared to Q1-19 due to lowered product prices against a backdrop of challenging macroeconomic conditions and decline in sales volumes due to reduced production volumes amid planned m
Slide 23: Segmental Details: Petrochemical
Geographical analysis of Segmental Details: Petrochemical segment revenue Asia remains a main market for Petrochemical segment Europe and Indian sub-continent remains other key markets Q1-20 Segment Revenue (%) Q1-19 Segment Revenue (%) 1% 2% 5% 3% 3% 6% 8% 39% 43% 29% 32% 15% 14% Asia Africa Am
Slide 24: Segmental Details: Petrochemical
Segmental Details: Petrochemical Key segment products analysis HDPE (contributed ~68% of the segment revenue in Q1-20) 1,005 1,008 925 817 773 114 115 111 112 88 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 NAO (contributed ~25% of the segment revenue in Q1-20) 1,010 999 984 924 859 41 41 45 42 30 Q1-19 Q2-19 Q3-1
Slide 25: 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 26: Segmental Details: Chlor-Alkali
Analysis of production & Segmental Details: Chlor-Alkali selling prices Production: Production down by 39% as compared to Q1-19, affected by planned maintenance shutdowns; Production decreased during the Q1-20 by 36% compared to Q4-19, due to planned shutdowns. Selling Prices: Declined as comp
Slide 27: Segmental Details: Chlor-Alkali
Segmental Details: Chlor-Alkali Analysis of segment revenue & net profit Revenue: QR 149 million, down by 28% as compared to Q1-19 due to lower product prices and sales volumes; Revenue for Q1-20, down by 16% compared to Q4-19 on the back of decline in sales volumes due to reduced production lev
Slide 28: 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 Q1-20 Segment Revenue (%) Q1-19 Segment Revenue (%) 3% 3% 1% 4% 15% 16% 3% 82% 73% Asia Africa Americas Indian sub-continent Middle East Europe Qata
Slide 29: Segmental Details: Chlor-Alkali Key segment products analysis
Segmental Details: Petrochemical Key segment products analysis Vinyl Chloride Monomer (VCM) (contributed ~66% of the segment revenue in Q1-20) 715 672 691 699 715 47 33 33 46 39 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Caustic Soda (contributed ~22% of the segment revenue in Q1-20) 343 368 316 257 251 48 36 40
Slide 30: CAPEX (2020 – 2024)
CAPEX (2020 – 2024) 30
Slide 31: CAPEX (2020 - 2024) – MPHC share
CAPEX (2020 - 2024) – MPHC share o Cumulative CAPEX spend of QR 1.2 billion CAPITAL EXPENDITURE (in QR Million) across all segments during 2020-2024; 2020 2021 2022 2023 2024 New o QChem/QChem II Furnance 49.0 93.8 25.2 - - NAO Tanks • CAPEX of QR 996 million planned during upgrade 12.0 6.8 3.6 13.8
Slide 32: COVID-19 – impact analysis
COVID-19 – impact analysis 32
Slide 33: COVID-19 impact analysis
COVID-19 impact analysis Business Measures taken / key impacts Results at the Group level Overall impact at aspects: the Group level Operational a) Crisis management committees a) Uninterrupted production No impact performance established at each operating entity continued at all facilities to ensur
Slide 34: COVID-19 impact analysis
COVID-19 impact analysis Business Key impacts Results at the Group level Overall impact at aspects: the Group level Financial a) Slowdown in GDP growth/ a. Petrochemical segment most affected Negative impact performance industrial activity causing with revenue and net profit declined decline in prod
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 Q.J.S.C. (trading as “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 regula
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@qp.com.qa Address: PO Box 3212, Doha, State of Qatar Please refer to www.mphc.com.qa for the latest information, publications, press releases and p
Mesaieed Petrochemical Holding Company — Q1 2020 Earnings Presentation on 6ix