Qurain Petrochemical Industries K S C P : Transcript of the Analysts Conference

Qurain Petrochemical Industries Company KSC (Public)

Thursday, November 10, 2022-14:30 (KWT UTC+03:00)

1H 2022-23 earnings call

Qurain Petrochemical Industries Company (QPIC)

Earnings Call transcript for the first half ended September 30, 2022 of the financial year 2022-2023 (1H FY2022/2023)

- edited script -

Held on Thursday, November 10th, 2022 at 14:30 (Kuwait Time) (UTC +03:00)

Participants from QPIC:

• Tanweer A. Khalfay, Chief Financial Officer (CFO)
• Mickey Zacharia, Chief Investment Officer (CIO)
• Abdulhameed N. Malhas, Investment & Communication Manager

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Qurain Petrochemical Industries Company KSC (Public)

Thursday, November 10, 2022-14:30 (KWT UTC+03:00)

1H 2022-23 earnings call

Abdulhameed Malhas:

Good afternoon, ladies and gentlemen, and thank you for joining us today on the Qurain Petrochemicals Industries Company (QPIC) webinar for the first half period ended September 30, 2022, of the financial year 2022-2023.

This is Abdulhameed Malhas, the Investment and Communication manager of QPIC. I have with me on the call today my two colleagues: Mr. Tanweer Khalfay, Chief Financial Officer (CFO), and Mr. Mickey Zacharia, Chief Investment Officer (CIO).

We will cover in our presentation today the highlights of the announced period, and then we will follow with a Q&A session to answer any inquiries you may have.

Before proceeding, I would like to draw your attention to the disclaimer on page two of the shared presentation. This webinar and presentation in no way constitute an invitation or offer to subscribe to or transact in any security.

Any forward-looking statements that may arise during this call are made to the best extent of our knowledge and assumptions as of date. Future results, performance, and events could always differ from those described during the webinar.

And now, I will hand over the call to Tanweer to begin the presentation. Tanweer,

please go ahead.

Financial Highlights

Tanweer Khalfay: Thank you, Abdulhameed. Good afternoon, everyone.

We're happy to present to you the financial results for the first half period ended September 30, 2022, of the financial year 2022-2023.

QPIC earned a net income of KD 15.81 million for the first half ended September 30, 2022, versus KD 3.35 million for the same period last year, representing an increase of KD 12.46 million or 372%. Earnings Per Share (EPS) for this period was, therefore, 14.72 fils per share versus 3.27 fils per share last year.

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Qurain Petrochemical Industries Company KSC (Public)

Thursday, November 10, 2022-14:30 (KWT UTC+03:00)

1H 2022-23 earnings call

Tanweer Khalfay: The first half of the year witnessed increased sales revenues from our subsidiaries of KD 145 million versus KD 111 million for the same period in the previous year, translating into an increase of KD 34.5 million, or 31%.

This is mainly attributable to the increased sales revenues of our major subsidiary, Saudia Dairy & Foodstuff Company (SADAFCO). The increased sales revenues resulted in an increase in the gross profit for the period amounting to KD 12.56 million, or 40% compared to the same period last year.

Dividend, interest, and other income increased from KD 31 thousand during the same period last year to KD 7.65 million in the first half of this year, mainly owing to the receipt of an interim dividend from EQUATE Group this year.

The share of results from associates increased from KD 2.03 million for the same period last year to KD 5.02 million during the current year, representing an increase of KD 2.98 million or 146%, owing to the increased share of profit from Kuwait Aromatics Company (KARO) and the inclusion of a share of net profit from Advanced Technology Company (ATC) this year.

General and Administrative (G&A) expenses increased from KD 12.72 million during the same period last year to KD 13.81 million during the current year, representing an increase of KD 1.09 million or 9%, mainly owing to the increase in G&A expenses of our subsidiaries.

Finance costs increased by 585% or KD 5.13 million, partly due to the increase in global interest rates. Also included under finance cost is the cost of a put option awarded by our subsidiary, SADAFCO.

With that, I conclude the financial highlights portion.

Abdulhameed Malhas: Thank you, Tanweer. With that, we conclude our management presentation for today's webinar.

We're happy to receive your questions right now. Should you have any questions that you may want to ask, kindly use the raise-handfunction and I will open the mic for you, or type them in the Q&A box and I will be happy to read them out for you.

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Qurain Petrochemical Industries Company KSC (Public)

Thursday, November 10, 2022-14:30 (KWT UTC+03:00)

1H 2022-23 earnings call

Q&A

There seems to be no question at the moment. As a reminder, ladies and gentlemen, you may use the dedicated functions to ask your questions…

We have no questions, and therefore, we will move on to the concluding remarks.

Concluding Remarks

Abdulhameed Malhas:

Ladies and gentlemen, this concludes our call for today.

On behalf of Qurain Petrochemical Industries, I would like to thank everyone for joining us today.

Presentation material has already been uploaded to our website, and a transcript of the call will be uploaded to our website as well as Boursa Kuwait within three business days.

Should any further questions arise at a later stage, please do not hesitate to get in touch with us through the dedicated section on the website.

You may disconnect now. Thank you.

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