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

Mesaieed Petrochemical Holding Company Q.s.c — Mesaieed Petrochemical Holding Company — H1 2024 Earnings Presentation

45 slides from Mesaieed Petrochemical Holding Company Q.s.c's earnings presentation, Jun 30, 2024

  1. Slide 1: Mesaieed Petrochemical Holding Company IR Presentation

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Mesaieed Petrochemical Holding Company IR Presentation 30 June 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 six-month period ended 30 June 2024) 6. Segmental results (For the six-month period ended 30 June 2024) 7. CAPEX (2024F – 2028F) 8.

  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: 27% Petrochemical Petrochemical and Chlor-Alkali; Chlor-Alkali • Production facilities

  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) 30% Peer 1 8,715.0 Peer 1 352 Peer 2 1,302.0 Peer 2 271 21% Net profit margin (%) Peer 3 1,175.0 Peer 3 66 1% Peer 4 527.0 MPHC 53 27% MPHC 194.0 MPHC ranks #5 Peer 4

  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 1050 by a sluggish global economic recovery, 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 six month-period ended 30 June 2024) 13

  14. Slide 14: Operational performance review

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Operational performance review • 1H-24 vs 1H-23: production for 1H-24 increased compared to Production (MT’ 000) same period of last year, mainly due to a maintenance +4% -2% turnaround carried out at QVC facilities during 1H-23 which affected production volumes

  15. Slide 15: Financial performance review

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Financial performance review Revenue (QR’ million) +3% • 1H-24 vs 1H-23: Group revenue decline mainly linked to the -7% decrease noted in average blended product prices, partially 1,535 707 726 offset by higher sales volume. 1,433 • 2Q-24 vs 1Q-24: revenue incre

  16. Slide 16: Net Profit Variance Analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Net Profit Variance Analysis QR ‘millions Net profits decreased due to: Unfavorable variance • Lowered average realized blended selling prices; • Higher variable costs; • Lower others due to lower interest income. Favorable variance • Higher sales volumes; • Fav

  17. Slide 17: MPHC operating rates

    CLASSIFICATION: C0 - NON-CONFIDENTIAL MPHC operating rates Operating rates of MPHC segments remained stable Petrochemicals Chlor-Alkali MPHC - Group 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% 98% 97% 97% 96% 9

  18. Slide 18: 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 25% Qatar Middle East 3% Asia, ex. ISC 10% 24% Africa Indian sub-continent 9% 29% 18 Mesaieed Petrochemica

  19. Slide 19: 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

  20. Slide 20: Segmental results

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental results (For the six-month period ended 30 June 2024) 20

  21. Slide 21: 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

  22. Slide 22: Segmental Details: Petrochemicals – production & selling prices

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemicals Analysis of production & selling prices  Production: Production down compared to 1H-23, due to lesser plant availability , which affected the overall production volumes for the segment.  Production declined during 2Q-24 in com

  23. Slide 23: Segmental Details: Petrochemicals – revenue & net profit

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemicals Analysis of segment revenue & net profit  Revenue: Down as compared to 1H-23, due to lower selling prices and sales volumes on the back of lesser production amid lesser availability;  Q2-24 revenue inched upward due to higher

  24. Slide 24: Segmental Details: Petrochemicals – geographical analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemicals Geographical analysis of segment revenue  Asia & Europe remains a main market for Petrochemical segment H1-24 Segment Revenue (%) H1-23 Segment Revenue (%) 3%0% 3% 2% 5% 3% 8% 10% 31% 33% 33% 33% 18% 18% Asia, excl. ISC Africa

  25. Slide 25: Segmental Details: Petrochemical key products analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Petrochemical Key segment products analysis HDPE 1,301 1,278 1,070 1,134 1,164 1,178 832 906 1,022 908 970 1,024 904 966 923 989 773 718 88 97 109 133 110 109 119 119 79 106 115 121 102 112 112 111 107 98 NAO 1,486 1,353 1,228 1,251 1,263 1,37

  26. Slide 26: 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

  27. Slide 27: Segmental Details: Chlor-Alkali – production & selling prices

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Analysis of production & selling prices  Production: Production increased significantly as compared to 1H-23, mainly due to better plant availability;  Production inched upward compared to 1Q-24.  Selling Prices: Declined versu

  28. Slide 28: Segmental Details: Chlor-Alkali – revenue & net profit

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Analysis of segment revenue & net profit  Revenue: Up as compared to 1H-23, mainly due to higher sales volumes, amid higher production, partially offset by lower selling prices;  Revenue for 2Q-24 remained relatively flat, as re

  29. Slide 29: Segmental Details: Chlor-Alkali – geographical analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Geographical analysis of segment revenue  Indian sub-continent remain a main market for Chlor-Alkali segment H1-24 Segment Revenue (%) H1-23 Segment Revenue (%) 3% 3% 4% 4% 22% 23% 6% 3% 3% 6% 63% 60% Asia, excl. ISC Africa Ameri

  30. Slide 30: Segmental Details: Chlor-Alkali key products analysis

    CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Chlor-Alkali Key segment products analysis Vinyl Chloride Monomer (VCM) 1,108 1,122 1,132 1,207 1,224 1,078 891 715 601 697 618 665 590 632 605 622 591 448 39 30 47 56 53 46 58 18 45 50 51 34 30 37 45 53 48 46 Caustic Soda 656 717 596 609 511

  31. Slide 31: CAPEX (2024F – 2028F)

    CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2024F – 2028F) 31

  32. Slide 32: CAPEX (2024F – 2028F) – MPHC share

    CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2024F – 2028F) – MPHC share –QR Million o MPHC Share of Cumulative CAPEX spend across all segments during 2024-2028 is presented in the below table Sr no Project name Category 2024 2025 2026 2027 2028 Q-Chem : Major Projects 1 2026 Turnaround Cost Turnaro

  33. Slide 33: 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 (i.e., Vinyl fund 55.2% of capacity of valued at integrated expected to Chlori

  34. Slide 34: New Salt Plant Project

    CLASSIFICATION: C0 - NON-CONFIDENTIAL New Salt Plant Project: Project Overview:  Board announced intention to enter into a joint venture “JV” with strategic partners for construction and operation of a salt plant.  The initial studies of project estimated total cost of USD 290 million.  Total pro

  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% 77% 74% 94% 85% 0.1 72% 81% 76% 81% 72% 100% 0.08 80% 0.06 0.110 0.110 0.110 60% 0.04 0.070 0.070 0.070 0.086 40% 0.060 0.080 0.02 0.040 0.040 0.027 20% 0 0% Market Capitali

  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 pri

  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 (Million

  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, MPHC 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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