Mesaieed Petrochemical Holding Company Q.s.c. · QSE:MPHC
Mesaieed Petrochemical Holding Company Q.s.c — Mesaieed Petrochemical Holding Company — Q1 2021 Earnings Presentation
38 slides from Mesaieed Petrochemical Holding Company Q.s.c's earnings presentation, Mar 31, 2021
Slide 1: Mesaieed Petrochemical Holding Company IR Presentation
Mesaieed Petrochemical Holding Company IR Presentation 31 March 2021 “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 the three-month period ended 31 March 2021) 7. Dividends and market statistics 8. Segmental details 9. CAPEX (2021f – 2025f) 10. Gove
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 Al Marri 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 Pe
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 (three months ended March 2021)
Results at glance (For the three-month period ended 31 March 2021) 12
Slide 13: Key Highlights
Key Highlights For the three-month period ended 31 March 2021 (MPHC Share) Production (MT’000) • Q1-21 production levels significantly up on Q1-20 due to lesser maintenance shutdowns in Q1-21, compared to Q1-20. • Production volumes declined in Q1-21 vs Q4-20, with lesser plant operating rates in Q1
Slide 14: Key Highlights
Key Highlights For the three-month period ended 31 March 2021 (MPHC Share) Revenue (QR million) • Q1-21 Group revenue up on Q1-20 driven by higher prices and sales volumes. • Q1-21 revenue up on Q4-20 by 7%, on account of improved selling price. There was a slight offset due to decline in sales volu
Slide 15: Net Profit Variance Analysis
Net Profit Variance Analysis QR ‘millions Net profits increased by QR 322 million due to: Favorable variance • Higher selling prices 36%; • Higher sales volumes 28%; • Favorable inventory differential due to lower drawdowns. Unfavorable variance • Higher variable costs on account of increase in volu
Slide 16: MPHC operating rates
MPHC operating rates Operating rates of MPHC segments remained stable 120% 115% 109% 105% 104% 104% 102% 102% 97% 96% 93% 90% 90% 87% 85% 85% 84% 81% 75% 75% 70% 64% 63% 57% Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Petrochemicals Chlor-Alkali MPHC - Group 16 Mesaieed Petrochemical Holding Com
Slide 17: Geographic analysis – MPHC Group revenue
Geographic analysis – MPHC Group revenue Asia remained MPHC’s largest market, while its presence in Europe continued to be substantial Europe 22% Qatar Middle East 4% Asia, ex. ISC 2% 28% Africa Indian sub-continent 8% 36% 17 Mesaieed Petrochemical Holding Company, IR Presentation, Q1-21
Slide 18: Dividends & Market Statistics
Dividends & Market Statistics 18
Slide 19: Dividends & Market Statistics
Dividends & Market Statistics Payout Ratio (%) Dividend per share 0.12 77% 94% 100% 81% 76% 81% 72% 74% 0.1 72% 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) QR 23.4 billion 37.1 31.6 24.4 2
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 – production & selling prices
Analysis of production & Segmental Details: Petrochemicals selling prices Production: Production up by 49% compared to Q1-20, as the segment had planned periodic turnaround of Q-Chem II facilities during Q1-20, which affected the overall operating rates for Q1-20 in comparison to Q1-21; Producti
Slide 23: Segmental Details: Petrochemicals – revenue & net profit
Segmental Details: Petrochemicals Analysis of segment revenue & net profit Revenue: QR 617 million, up by 68% as compared to Q1-20 due to higher product prices (+31%) and increased sales volumes (+29%); Q1-21 revenue up by 3% compared to Q4-20 on the back of improved selling prices (+14%), offse
Slide 24: Segmental Details: Petrochemicals – geographical analysis
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 Q1-21 Segment Revenue (%) Q1-20 Segment Revenue (%) 3% 4% 2% 5% 6% 9% 39% 43% 29% 32% 13% 15% Asia, excl. ISC
Slide 25: Segmental Details: Petrochemical key products
Segmental Details: Petrochemical Key segment products analysis HDPE Sales Volumes (MT ‘000) (contributed ~60% of the segment revenue in Q1-21) Selling price ($/MT) 1,008 1,070 925 817 832 906 773 718 115 111 112 88 97 109 133 110 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 NAO (contributed ~24%
Slide 26: Segmental Details: Chlor-Alkali
Segmental Details: Chlor-Alkali Qatar Vinyl Company Limited Q.S.C. (“QVC”) is owned 55.2% by MPHC, 31.9% by Qapco and 12.9% by QP; QVC’s operations have been integrated with Qapco, bringing additional synergies to the group. The segment is engaged in the production of a range of chlor-alkali p
Slide 27: Segmental Details: Chlor-Alkali – production & selling prices
Analysis of production & Segmental Details: Chlor-Alkali selling prices Production: Production increased by 44% as compared to Q1-20, as Q1-20 was mainly affected by a major planned shutdown; Production declined during the Q1-21 by 9% compared to Q4-20, due to lesser plant operating rates in com
Slide 28: Segmental Details: Chlor-Alkali – revenue & net profit
Segmental Details: Chlor-Alkali Analysis of segment revenue & net profit Revenue: QR 277 million, up by 86% as compared to Q1-20 due to higher product prices (+47%) and sales volumes (+26%); Revenue for Q1-21, up by 15% compared to Q4-20 on the back of improved in selling price (+28%), partially
Slide 29: Segmental Details: Chlor-Alkali – geographical analysis
Geographical analysis of Segmental Details: Chlor-Alkali segment revenue Indian sub-continent and Asia remains a main market for Chlor-Alkali segment Q1-21 Segment Revenue (%) Q1-20 Segment Revenue (%) 2% 2% 6% 3% 5% 15% 86% 82% Asia, excl. ISC Africa Indian sub-continent Qatar Europe 29 Note: The
Slide 30: Segmental Details: Chlor-Alkali key products
Segmental Details: Chlor-Alkali Key segment products analysis Vinyl Chloride Monomer (VCM) Sales Volumes (MT ‘000) Selling price ($/MT) (contributed ~75% of the segment revenue in Q1-21) 1,108 891 672 691 699 715 601 448 33 33 46 39 30 47 56 53 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Caustic
Slide 31: CAPEX (2021f – 2025f)
CAPEX (2021f – 2025f) 31
Slide 32: CAPEX (2021f – 2025f) – MPHC share
CAPEX (2021f – 2025f) – MPHC share CAPITAL EXPENDITURE (in QR Million) o Cumulative CAPEX spend of QR 1.1 billion 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
Slide 33: Governance Structure
Governance Structure 33
Slide 34: 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 35: 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 36: Sales and Marketing
Sales and Marketing 36 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 36
Slide 37: 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 38: For further information, MPHC 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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