EQUATE reports Q1 2019 earnings

Kuwait: The EQUATE Group, a global producer of petrochemicals, today announced its Q1 2019 unaudited earnings, reporting $294 million in EBITDA, a 49% decrease from $577 million in Q1 2018, and $889 million in revenue, a 28% decrease from $1,241 million in Q1 2018.  Net income after tax stood at $183 million in Q1 2019, a 57% decrease from $435 million in the same period last year.

Commenting on the results, Dr. Ramesh Ramachandran, CEO and President of the EQUATE Group, said: “While downstream demand growth has remained stable, uncertainty of tariffs and volatility in global markets has unsettled our customers. The rapid rise in inventory ahead of the Chinese New Year has taken longer than expected to work out. Nevertheless, inventory at end user customers seems to be at the lowest level we have seen in a long time. The bearish sentiment can be overcome when we remove the factors contributing to the uncertainty. Our focus at EQUATE will remain on being the safe, reliable and low-cost producer to ride out this phase of market uncertainty. The construction of US Gulf Coast plant remains on track to go on line before the end of 2019.”

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ABOUT THE EQUATE GROUP

The EQUATE Group is a global producer of petrochemicals and the world’s second largest producer of ethylene glycol (EG). The Group owns and operates industrial complexes in Kuwait, North America and Europe that annually produce over 6 million tons of ethylene, EG, polyethylene (PE), polyethylene terephthalate (PET), styrene monomer (SM), paraxylene (PX), heavy aromatics (HA) and benzene (BZ). The EQUATE Group includes EQUATE Petrochemical Co (EQUATE), The Kuwait Olefins Company (TKOC), as well as a number of subsidiaries such as MEGlobal and Equipolymers. Their products are marketed throughout Asia, the Americas, Europe, the Middle East and Africa. The Group’s shareholders are Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Employing more than 1,500 people worldwide, the EQUATE Group is a leading enterprise that pursues sustainability wherever it operates through partnerships in fields that include the environment, economy and society. Visit www.equate.com .

Disclaimer 

This earnings announcement (the “Announcement”) is for information only. The announcement is based on unaudited financial information of EQUATE Petrochemical Co. K.S.C.C. and The Kuwait Olefins Co. K.S.C.C. (together with their consolidated subsidiaries, the “EQUATE Group”) which is subject to change without notice and the accuracy thereof is not guaranteed. The information in the Announcement does not intend to contain all material information concerning the financial status of the EQUATE Group. We do not make any representation regarding, and assume no responsibility or liability (however arising and regardless of nomenclature) for, the accuracy or completeness of, or any errors or omissions in, any information contained in the Announcement.

Historical and current performance data are not necessarily indicative of future performance. Information contained in this Announcement may refer to forward-looking statements. The views in the Announcement are based on current assumptions which are subject to various risks and may change over time, as such we make no representations in respect of the correctness, accuracy, and/or completeness of such assumptions. Further, no assurance can be given that future events will occur, and/or that projections (if any) will be achieved. Past performance is not a reliable indication of future performance. Actual results may differ materially from those projected. The Announcement shall not be considered, or in any way construed, as an offering of securities.

© Press Release 2019