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

Mesaieed Petrochemical Holding Company Q.s.c — Mesaieed Petrochemical Holding Company — Q1 2024 Earnings Presentation

45 slides from Mesaieed Petrochemical Holding Company Q.s.c's earnings presentation, Mar 31, 2024

  1. Slide 1: Mesaieed Petrochemical Holding Company IR Presentation

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Mesaieed Petrochemical Holding Company IR Presentation 31 March 2024 “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 three-month period ended 31 March 2024) 6. Segmental results (For the three-month period ended 31 March 2024) 7. CAPEX (2024F – 202

  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: 26.1% 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 #98 among “2023 Forbes List of Top 100 Listed Companies in the Middle East” 9

  10. Slide 10: Competitive positioning versus regional peers

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Competitive positioning versus regional peers Revenue. (USD’ million) Net profit (USD’ million) Peer 1 5,791.0 Peer 1 1,401 24% Peer 2 1,297 28% Peer 2 4,643.0 Net profit margin (%) Peer 3 2,093.0 Peer 3 323 15% Peer 4 37,740.0 MPHC 298 35% MPHC 852.0 MPHC ranks

  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 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

  13. Slide 13: MPHC results

    CLASSIFICATION: C0 - NON-CONFIDENTIAL MPHC results (For the three month-period ended 31 March 2024) 13

  14. Slide 14: 1Q-24 results at a Glance vs. 1Q-23

    CLASSIFICATION: C0 - NON-CONFIDENTIAL 1Q-24 results at a Glance vs.1Q-23 Revenue -11% EBITDA -18% Net profit -28% QR 707 million QR 305 billion QR 194 billion EBITDA Margin: 43% EPS: QR 0.015  Continued macroeconomic challenges are weighing down on commodity prices, directly affecting the financial

  15. Slide 15: Operational performance review

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Operational performance review • 1Q-24 vs 1Q-23: production for 1Q-24 increased compared to Production (MT’ 000) last year mainly due to a maintenance turnaround carried out +17% -5% at QVC facilities during 1Q-23 which affected production volumes for 1Q-23. 280

  16. Slide 16: Financial performance review

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Financial performance review Revenue (QR’ million) -2% • 1Q-24 vs 1Q-23: Group revenue declined mainly linked to the -13% decrease noted in average blended product prices. 721 707 815 707 • 1Q-24 vs 4Q-23: revenue decreased on a quarter-on-quarter basis, due to

  17. Slide 17: Net Profit Variance Analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Net Profit Variance Analysis QR ‘millions Net profits decreased by QR 75 million (-28%) due to: Unfavorable variance • Lowered average realized blended selling prices (-17%); • Higher variable costs • Lower others due to lower interest income. Favorable variance

  18. 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% 104% 103% 102% 99% 99% 99% 98% 98% 98% 97% 97% 96% 93% 91% 90% 87% 87% 85% 85% 85% 83% 83% 81% 80

  19. 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 37% Qatar Middle East 3% Asia, ex. ISC North America 9% 13% 0% Africa Indian sub-continent 8% 30% 19 Mesai

  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 resilient 150 61% 65% 61% 130 58% 60% Oil price (USD/bbl), brent 55% 56% 55% MPHC EBITDA Margins (%) 54% 55% 110 50% 52% 52% 48% 49% 50% 90 47% 44% 43

  21. Slide 21: Segmental results

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental results (For the three-month period ended 31 March 2024) 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

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemicals Analysis of production & selling prices  Production: Production down by 7% compared to 1Q-23, as the segment carried out a planned periodic turnaround at Q-Chem facilities during 1Q-23, which affected the overall production vol

  24. Slide 24: Segmental Details: Petrochemicals

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemicals Analysis of segment revenue & net profit  Revenue: QR 516 million down by 12% as compared to 1Q-23, due to lower selling prices (-10%) and marginally lower sales volumes;  Q1-24 revenue decreased by (-16%) due to lower selling

  25. Slide 25: Segmental Details: Petrochemicals

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemicals Geographical analysis of segment revenue  Asia & Europe remains a main market for Petrochemical segment Q1-24 Segment Revenue (%) Q1-23 Segment Revenue (%) 3%0% 3% 2% 6% 4% 20% 8% 11% 32% 22% 33% 38% 18% Asia, excl. ISC Africa

  26. Slide 26: Segmental Details: Petrochemical Key segment products analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemical Key segment products analysis HDPE (contributed ~69% of the segment revenue in 1Q-24) 1,301 1,134 1,164 1,178 1,278 1,022 773 718 832 906 1,070 908 970 1,024 904 966 923 88 97 109 133 110 109 119 119 79 106 115 121 102 112 112 11

  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

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Analysis of production & selling prices  Production: Production increased significantly by 74% as compared to 1Q-23, mainly due to better plant availability;  Production remained flat compared to 4Q-23.  Selling Prices: decline

  29. Slide 29: Segmental Details: Chlor-Alkali

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Analysis of segment revenue & net profit  Revenue: QR 191 million, up by 41% as compared to 1Q-23, mainly due to higher sales volumes (63%), amid higher production (74%), offset by lower selling prices (-14%);  Revenue for 1Q-24

  30. Slide 30: Segmental Details: Chlor-Alkali

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Geographical analysis of segment revenue  Indian sub-continent remain a main market for Chlor-Alkali segment Q1-24 Segment Revenue (%) Q1-23 Segment Revenue (%) 2% 2% 5% 2% 21% 28% 1% 8% 57% 65% 8% Asia, excl. ISC Africa Americas

  31. 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 1Q-24) 1,108 1,1221,132 1,207 1,224 1,078 891 715 697 618 665 590 632 605 622 448 601 39 30 47 56 53 46 58 18 45 50 51 34 30 37

  32. Slide 32: CAPEX (2024F – 2028F)

    CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2024F – 2028F) 32

  33. 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

  34. 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

  35. Slide 35: Dividends & Market Capitalization

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Dividends & Market Capitalization 35

  36. 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

  37. Slide 37: Historical performance (2018 – 2023)

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2018 – 2023) 37

  38. 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

  39. 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

  40. Slide 40: Governance Structure

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Governance Structure 40

  41. 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

  42. 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

  43. Slide 43: Sales and Marketing

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Sales and Marketing 43 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 43

  44. 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

  45. 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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