Mesaieed Petrochemical Holding Company Q.s.c. · QSE:MPHC

Mesaieed Petrochemical Holding Company Q.s.c — Mesaieed Petrochemical Holding Company — FY2021 Earnings Presentation

44 slides from Mesaieed Petrochemical Holding Company Q.s.c's earnings presentation, Dec 31, 2021

  1. Slide 1: Mesaieed Petrochemical Holding Company IR Presentation

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Mesaieed Petrochemical Holding Company IR Presentation 31 December 2021 “one of the region’s premier diversified petrochemical conglomerates with interests in the production of olefins, polyolefins, alpha olefins and chlor-alkali products.”

  2. 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

  3. 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 December 2021) 6. Segment results (For the year ended 31 December 2021) 7. CAPEX (2022F – 2026F) 8. Dividends and mar

  4. Slide 4: About MPHC

    CLASSIFICATION: C0 - NON-CONFIDENTIAL About MPHC 4

  5. 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

  6. 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: 26.6% Petrochemical Petrochemical and Chlor-Alkali; Chlor-Alkali • Production faciliti

  7. Slide 7: Competitive strengths

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Competitive strengths 7

  8. 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

  9. Slide 9: Regional peers review

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Regional peers review MPHC ranked #85 among “2021 Forbes List of Top 100 Companies in the Middle East” 9

  10. 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 92.8 Peer 1 4,826 15% Peer 2 25.7 Peer 2 1,549 40% Peer 3 10.3 Peer 3 605 33% Net profit margin (%) Peer 4 8.2 Peer 4 518 21% MPHC 7.2 MPHC ranks #5 MPHC 39

  11. Slide 11: Macroeconomic updates

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Macroeconomic updates 11

  12. Slide 12: Macroeconomic updates

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Macroeconomic updates Petrochemicals 1350 1250 • Economic momentum carried forward from the tail end of 1150 HDPE ($/MT) last year allowed sequential recovery in demand for PE 1050 products. Supply side remained constrained and global logistical bottlenecks rema

  13. Slide 13: MPHC results (For the year ended 31 December 2021)

    CLASSIFICATION: C0 - NON-CONFIDENTIAL MPHC results (For the year ended 31 December 2021) 13

  14. Slide 14: YE-21 results at a Glance

    CLASSIFICATION: C0 - NON-CONFIDENTIAL YE-21 results at a Glance Growth vs. YE-20 Revenue 62% EBITDA 75% Net profit 250% QR 4.0 billion QR 2.3 billion QR 1.9 billion EBITDA Margin: 57.3% EPS: QR 0.148 RoAE: 11.7% • 2021 results captured benefits from strong product prices, underpinned by improved mac

  15. Slide 15: Operational performance review

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Operational performance review Production (MT’ 000) • 2021 production volumes significantly up on last year due to lesser no. of maintenance days during current year compared to last year. Major shutdowns were mainly conducted during Q1-20. • Production volumes

  16. Slide 16: Financial performance review

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Financial performance review Revenue (QR’ million) • 2021 Group revenue up on 2020 driven by higher prices and sales volumes. • Q4-21 revenue down on Q3-21 by 12%, on account of lesser sales volumes, partially offset due to higher selling prices. Net profit (QR’

  17. Slide 17: Net Profit Variance Analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Net Profit Variance Analysis QR ‘millions Net profits increased by QR 1,338 million due to: Favorable variance • Higher selling prices 52%; • Higher sales volumes 7%; • Favorable inventory differential due to lesser drawdowns; • Others are higher, predominantly

  18. 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% 105% 104% 104% 102% 102% 102% 97% 96% 93% 90% 90% 87% 85% 85% 84% 81% 78% 75% 75% 70% 64% 63% 57% 41% Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-

  19. Slide 19: Geographic analysis – MPHC Group revenue

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographic analysis – MPHC Group revenue Asia remained MPHC’s largest market, while its presence in Europe continued to be substantial Europe 26% Qatar Middle East 4% Asia, ex. ISC 4% 30% Africa Indian sub-continent 8% 31% 19 Mesaieed Petrochemical Holding Compa

  20. 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 100 61% 65% 90 58% 60% 56% Oil price (USD/bbl), brent 54% MPHC EBITDA Margins (%) 80 55% 50% 70 47% 50% 60 45% 50 38% 40% 40 35% 29% 30 30% 20

  21. Slide 21: Segment results (For the year ended 31 December 2021)

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segment results (For the year ended 31 December 2021) 21

  22. 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

  23. Slide 23: Segmental Details: Petrochemicals – production & selling prices

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Analysis of production & Segmental Details: Petrochemicals selling prices  Production: Production up by 14% compared to 2020, as the segment had planned periodic turnaround of Q-Chem II facilities during Q1-20, which affected the overall operating rates for 202

  24. Slide 24: Segmental Details: Petrochemicals – revenue & net profit

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemicals Analysis of segment revenue & net profit  Revenue: QR 2.9 billion, up by 60% as compared to 2020 due to higher product prices (+44%) and enhanced sales volumes (+11%);  Q4-21 revenue marginally up by 2% compared to Q3-21 mainl

  25. Slide 25: Segmental Details: Petrochemicals – geographical analysis

    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 YE-21 Segment Revenue (%) YE-20 Segment Revenue (%) 5% 3% 3% 3% 7% 9% 39%

  26. Slide 26: Segmental Details: Petrochemical key products analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemical Key segment products analysis HDPE (contributed ~65% of the segment revenue in YE-21) 1,301 1,164 1,070 1,134 925 817 832 906 773 718 111 112 88 97 109 133 110 109 119 119 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-

  27. 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

  28. Slide 28: Segmental Details: Chlor-Alkali – production & selling prices

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Analysis of production & Segmental Details: Chlor-Alkali selling prices  Production: Production increased by 2% as compared to 2020, as current year had higher number of operating days versus last year, despite of a planned shutdown in Q4-21;  Production decli

  29. Slide 29: Segmental Details: Chlor-Alkali – revenue & net profit

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Analysis of segment revenue & net profit  Revenue: QR 1.0 billion, up by 70% as compared to 2020 due to higher product prices (+71%), slightly offset by lesser sales volumes (-1%);  Revenue for Q4-21 down by 46% compared to Q3-2

  30. Slide 30: Segmental Details: Chlor-Alkali – geographical analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographical analysis of Segmental Details: Chlor-Alkali segment revenue  Indian sub-continent and Asia remain a main market for Chlor-Alkali segment YE-21 Segment Revenue (%) YE-20 Segment Revenue (%) 2% 7% 5% 1% 2% 2% 3% 2% 18% 2% 81% 75% Asia, excl. ISC Afri

  31. Slide 31: Segmental Details: Chlor-Alkali key products analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Key segment products analysis Vinyl Chloride Monomer (VCM) (contributed ~71% of the segment revenue in YE-21) 1,108 1,122 1,132 1,207 891 691 699 715 601 448 33 46 39 30 47 56 53 46 58 18 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21

  32. Slide 32: CAPEX (2022F – 2026F)

    CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2022F – 2026F) 32

  33. Slide 33: CAPEX (2022F – 2026F) – MPHC share

    CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2022F – 2026F) – MPHC share CAPITAL EXPENDITURE (Amounts in QAR' millions) Project Name Category 2022 2023 2024 2025 2026 o Cumulative CAPEX spend of QR 1.5 billion Turnaround related Turnaround 141.6 1.8 12.5 44.6 142.7 across all segments during 2022-20

  34. Slide 34: Dividends & Market Capitalization

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Dividends & Market Capitalization 34

  35. 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* * Subject to A

  36. Slide 36: Historical performance (2016 – 2021)

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2016 – 2021) 36

  37. 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

  38. 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

  39. Slide 39: Governance Structure

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Governance Structure 39

  40. 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

  41. 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

  42. Slide 42: Sales and Marketing

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Sales and Marketing 42 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 42

  43. 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

  44. 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@qp.com.qa or mphc@qp.com.qa Address: PO Box 3212, Doha, State of Qatar Please refer to ww

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