Q2 2026 Mesaieed Petrochemical Holding Co QPSC Earnings Call
Operator: Hello, and welcome to the Mesaieed conference call. Please note that this call is being recorded. Now, I would like to turn the call over to Dana. You may now begin.
Speaker #1: Hello and welcome to the Mesaieed conference call. Please note that this call is being recorded. Now, I would like to turn the call over to Dana.
Speaker #1: You may now begin.
Dana Al-Suwaidi: Hello, everyone. This is Dana Al-Suwaidi from QNB Financial Services. I would like to welcome everyone to Mesaieed Petrochemical Holding Company's Q2 2026 financial results conference call. On this call from QatarEnergy's Privatized Companies Affairs, we have Saoud Abdulaziz Alabdulghani, Head of Investor Relations and Communications, Sami Mathlouthi, Assistant Manager of Financial Operations, and Saud Saifuddin, Senior Management Reporting Analyst. I will now turn the call over to Saoud Abdulghani to discuss the company results. Please go ahead.
Dana Al-Sowaidi: Hello, everyone. This is Dana Al-Suwaidi from QNB Financial Services. I would like to welcome everyone to Mesaieed Petrochemical Holding Company's Q2 2026 financial results conference call. On this call from QatarEnergy's Privatized Companies Affairs, we have Saoud Abdulaziz Alabdulghani, Head of Investor Relations and Communications, Sami Mathlouthi, Assistant Manager of Financial Operations, and Saud Saifuddin, Senior Management Reporting Analyst. I will now turn the call over to Saoud Abdulghani to discuss the company results. Please go ahead.
Speaker #2: Hello everyone. This is Dana Msaouedi from QMB Financial Services. I would like to welcome everyone to Mesaieed Petrochemical Holding Company's second quarter 2026 financial results conference call.
Speaker #2: On this call from Qatar Energy's privatized company affairs, we have Saoud ud Abdelaziz El Abdelghani, Head of Investor Relations and Communications; Sami Mathlouthi, Assistant Manager of Financial Operations; and Saoud Seifeddine, Senior Management Reporting Analyst.
Speaker #2: I will now turn the call over to Saoud Abdelghani to discuss the company results. Please go ahead.
Saoud Abdulaziz Alabdulghani: Thank you, Dana. Everyone, and thank you all for joining us. Before we go into the business and performance update, I would like to mention that this call is purely for MPHC investors, and no media representatives should be attending this call. Additionally, please note that this call is subject to MPHC disclaimer statement as detailed on slide number 2 of the IR presentation. Moving on to the call. On Monday, 10 August 2026, MPHC published its results for the six-month period ended 30 June 2026. During today's calls, we'll go through these results and provide you with an update on key financial and operational highlights. Today in this call, we have Sami Mathlouthi, Assistant Manager of Financial Operations, myself, Saoud Abdulghani, Head of Investor Relations and Communications, and Saud Ahmed Saifuddin, Senior Management Reporting Analyst. We will structure this call as follows.
Saoud Abdulaziz Alabdulghani: Thank you, Dana. Everyone, and thank you all for joining us. Before we go into the business and performance update, I would like to mention that this call is purely for MPHC investors, and no media representatives should be attending this call. Additionally, please note that this call is subject to MPHC disclaimer statement as detailed on slide number 2 of the IR presentation. Moving on to the call. On Monday, 10 August 2026, MPHC published its results for the six-month period ended 30 June 2026. During today's calls, we'll go through these results and provide you with an update on key financial and operational highlights. Today in this call, we have Sami Mathlouthi, Assistant Manager of Financial Operations, myself, Saoud Abdulghani, Head of Investor Relations and Communications, and Saud Ahmed Saifuddin, Senior Management Reporting Analyst. We will structure this call as follows.
Speaker #3: Thank you, Dana. Thank you all for joining us. Before we go into the business and performance update, I would like to mention that this call is purely for MPHC investors, and no media representatives should be attending this call.
Speaker #3: Additionally, please note that this call is subject to the MPHC disclaimer statement, as detailed on slide number 2 of the IR presentation. Moving on to the call, on Monday, 10 August 2026, MPHC published its results for the six-month period ended 30 June 2026. During today's call, we will go through these results and provide you with an update on key financial and operational highlights.
Speaker #3: Today, on this call, we have Sami Mathlouthi, Assistant Manager of Financial Operations; myself, Saoud Abdelghani, Head of Investor Relations and Communications; and Saoud Ahmed Seifeddine, Senior Management Reporting Analyst.
Speaker #3: We will structure this call as follows: First, I will provide you with a brief overview of MPHC's ownership structure, its competitive strength, and overall governance structure.
Saoud Abdulaziz Alabdulghani: First, I'll provide you with a brief overview of MPHC ownership structure, its competitive strength, and overall governance structure. Secondly, Sami will provide an overview of MPHC financial and operational performance as a group. Then Saud will provide an update on the performance of each operating segment. To start with, as detailed on the IR deck, the ownership structure of MPHC is made up of QatarEnergy, which has a 57.9% shareholding, with the remaining 42.1% comprising the free float on the Qatar Stock Exchange, and is held by various domestic and international institutions, corporates, and individuals. QatarEnergy, being the main shareholder of MPHC, provide most of the head office functions to the group through a service level agreement. The operation of MPHC JV are held independently, managed by their respective board of directors and senior management teams.
Saoud Abdulaziz Alabdulghani: First, I'll provide you with a brief overview of MPHC ownership structure, its competitive strength, and overall governance structure. Secondly, Sami will provide an overview of MPHC financial and operational performance as a group. Then Saud will provide an update on the performance of each operating segment. To start with, as detailed on the IR deck, the ownership structure of MPHC is made up of QatarEnergy, which has a 57.9% shareholding, with the remaining 42.1% comprising the free float on the Qatar Stock Exchange, and is held by various domestic and international institutions, corporates, and individuals. QatarEnergy, being the main shareholder of MPHC, provide most of the head office functions to the group through a service level agreement. The operation of MPHC JV are held independently, managed by their respective board of directors and senior management teams.
Speaker #3: Secondly, Sami will provide an overview of MPHC's financial and operational performance as a group. Then, Saoud will provide an update on the performance of each operating segment.
Speaker #3: To start with, as detailed on the IR deck, the ownership structure of MPHC is made up of Qatar Energy, which has a 57.9% shareholding.
Speaker #3: With the remaining 42.1% comprising the three floats among the Qatar Exchange. It is held by various domestic and international institutions, corporates, and individuals.
Speaker #3: Qatar Energy, being the main shareholder of MPHC, provides most of the head office functions to the group through a service level agreement. The operations of MPHC joint ventures are independently managed by their respective boards of directors and senior management teams.
Saoud Abdulaziz Alabdulghani: In terms of competitive advantages, as detailed in the deck, all of MPHC group companies are strategically placed in terms of competitively priced and assured feedstock supply under long-term arrangements, solid liquidity position with strong cash flow generation, and working with highly reputable JV partners. Additionally, its partnership with QatarEnergy Marketing acts as the catalyst for its access to global markets. The IR presentation provides additional details on the governance structure of MPHC, including details of MPHC Corporate Governance Code. I will now hand over to Sami.
Saoud Abdulaziz Alabdulghani: In terms of competitive advantages, as detailed in the deck, all of MPHC group companies are strategically placed in terms of competitively priced and assured feedstock supply under long-term arrangements, solid liquidity position with strong cash flow generation, and working with highly reputable JV partners. Additionally, its partnership with QatarEnergy Marketing acts as the catalyst for its access to global markets. The IR presentation provides additional details on the governance structure of MPHC, including details of MPHC Corporate Governance Code. I will now hand over to Sami.
Speaker #3: In terms of competitive advantages, as detailed in the deck, all of MPHC Group companies are strategically placed in terms of competitively priced and assured feedstock supply, and their long-term arrangements, solid liquidity position with strong cash flow generation, and working with highly reputable JV partners. Additionally, its partnership with QatarEnergy Marketing acts as the catalyst for access to global markets.
Speaker #3: The IR presentation provides additional details on the governance structure of MPHC, including details of the MPHC Code of Corporate Governance. I will now hand over to Sami.
Sami Mathlouthi: Thank you, Saud. Good afternoon, everyone, and thank you for joining us. The group continued to undertake production adjustments due to the ongoing regional conflict. These circumstances affected MPHC operating performance, resulting in reduced production volumes across both the petrochemical and chlor-alkali segments. Moving on to financial performance, MPHC reports a net loss of QAR 183 million for the six-month period ended 30 June 2026, reflecting 148% decline compared to the same period of last year.
Sami Mathlouthi: Thank you, Saud. Good afternoon, everyone, and thank you for joining us. The group continued to undertake production adjustments due to the ongoing regional conflict. These circumstances affected MPHC operating performance, resulting in reduced production volumes across both the petrochemical and chlor-alkali segments. Moving on to financial performance, MPHC reports a net loss of QAR 183 million for the six-month period ended 30 June 2026, reflecting 148% decline compared to the same period of last year. The decrease in profitability was primarily driven by a 56% decrease in sales volumes, reflecting logistical disruption during the period and in turn, resulting in a 57% decrease in revenue. EBITDA for the period declined by 96% compared to H1 2025, largely due to weaker top-line performance. Margin also came under pressure, with EBITDA margin decreasing to 7% compared with 14% in the H1 of 2025.
Speaker #4: Thank you, Saoud. Good afternoon, everyone, and thank you for joining us. The group continued to undertake production adjustments due to the ongoing regional conflict.
Speaker #4: These circumstances affected MPHC's operating performance, resulting in reduced production volumes across both the petrochemical and crude alkaline segments. Moving on to financial performance, MPHC reports a net loss of QAR 183 million for the six-month period ended 30 June 2026, reflecting a 148% decline compared to the same period last year.
Sami Mathlouthi: The decrease in profitability was primarily driven by a 56% decrease in sales volumes, reflecting logistical disruption during the period and in turn, resulting in a 57% decrease in revenue. EBITDA for the period declined by 96% compared to H1 2025, largely due to weaker top-line performance. Margin also came under pressure, with EBITDA margin decreasing to 7% compared with 14% in the H1 of 2025.
Speaker #4: The decrease in profitability was primarily driven by a 56% decrease in sales volumes, reflecting logistical disruption during the period, and in turn resulting in a 57% decrease in revenue.
Speaker #4: Bidder for the period declined by 93% compared to the first half of 2025, largely due to weaker top line performance. Margin also came under pressure, with bidder margin decreasing to 7%, compared with 43% in the first half of 2025.
Sami Mathlouthi: While operating costs decreased in line with lower production and sales volumes, the group continued to incur fixed operating costs to maintain safe and reliable operations. On a quarter-on-quarter basis, MPHC reported a net loss compared to the previous quarter mainly due to lower group revenue across both segments. While average selling prices did improve during the quarter, further declines in sales volumes across both the Petrochemical and the Chlor-Alkali segment resulted in 69% decrease in revenue as well as further margin compression. Despite the challenging operating environment, MPHC continued to maintain a strong liquidity position with cash and bank balances amounting to QAR 3.2 billion as of 31 June 2026. I will now hand over to Saud.
Sami Mathlouthi: While operating costs decreased in line with lower production and sales volumes, the group continued to incur fixed operating costs to maintain safe and reliable operations. On a quarter-on-quarter basis, MPHC reported a net loss compared to the previous quarter mainly due to lower group revenue across both segments. While average selling prices did improve during the quarter, further declines in sales volumes across both the Petrochemical and the Chlor-Alkali segment resulted in 69% decrease in revenue as well as further margin compression. Despite the challenging operating environment, MPHC continued to maintain a strong liquidity position with cash and bank balances amounting to QAR 3.2 billion as of 31 June 2026. I will now hand over to Saud.
Speaker #4: While operating costs decreased in line with low production and sales volumes, the Group continued to incur fixed operating costs to maintain safe and reliable operations.
Speaker #4: On a quarter-on-quarter basis, MPHC reported a net loss compared to the previous quarter, mainly due to lower group revenue across both segments. While average selling prices did improve during the quarter, further declines in sales volumes across both the petrochemical and crude alkaline segments resulted in a 69% decrease in revenue, as well as further margin compression.
Speaker #4: Despite the challenging operating environment, MPHC continued to maintain a strong liquidity position, with cash and bank balances amounting to QR 3.2 billion as of 30 June 2026.
Speaker #4: I will now hand over to Sami.
Saud Saifuddin: Thank you, Sami. Good afternoon, everyone, and thank you for joining us. Moving to segmented performance and starting with Petrochemical segment. The Petrochemical segment reported a net loss of 138 million for the current period, posting a 142% decline compared to the H1 of 2025. Weaker operational performance driven by sales volume decreasing by 57% and revenue by 60%, negatively impacting overall performance. At the same time, commodity prices remained under the downward pressure amid continued global oversupply, subdued demand in key end market, and present macroeconomic uncertainty.
Saud Saifuddin: Thank you, Sami. Good afternoon, everyone, and thank you for joining us. Moving to segmented performance and starting with Petrochemical segment. The Petrochemical segment reported a net loss of 138 million for the current period, posting a 142% decline compared to the H1 of 2025. Weaker operational performance driven by sales volume decreasing by 57% and revenue by 60%, negatively impacting overall performance. At the same time, commodity prices remained under the downward pressure amid continued global oversupply, subdued demand in key end market, and present macroeconomic uncertainty. These factors adversely affected margins during the period. On quarter-on-quarter basis, the segment reported a net loss of 150 million compared with a net profit of 12 million in the Q1 of 2026. The decline was primarily driven by 79% reduction in revenue, reflecting an 86% decrease in sales volume, mainly linked to lower production output.
Speaker #3: Thank you, Sami. Good afternoon, everyone, and thank you for joining us. Moving to segmented performance and starting with the petrochemical segment, the petrochemical segment reported a net loss of $138 million for the current period, posting a 142% decline compared to the first half of 2025.
Speaker #3: Weaker operational performance was driven by sales volume decreasing by 57% and revenue by 60%, negatively impacting overall performance. At the same time, commodity prices remained under downward pressure amid continued global oversupply, subdued demand in key end markets, and the presence of microeconomic uncertainty.
Saud Saifuddin: These factors adversely affected margins during the period. On quarter-on-quarter basis, the segment reported a net loss of 150 million compared with a net profit of 12 million in the Q1 of 2026. The decline was primarily driven by 79% reduction in revenue, reflecting an 86% decrease in sales volume, mainly linked to lower production output.
Speaker #3: These factors adversely affected margins during the period. On a quarter-on-quarter basis, the segment reported a net loss of 150 million, compared with a net profit of 12 million in the first quarter of 2026.
Speaker #3: The decline was primarily driven by a 79% reduction in revenue, reflecting an 86% decrease in sales volume, mainly linked to lower production output. This was partially offset by higher average realized selling prices, which benefited from a tighter market supply condition during the period.
Saud Saifuddin: This was partially offset by higher average realized selling prices, which benefited from the tighter market supply condition during the period. Moving to Chlor-alkali segment. The Chlor-alkali segment reported a net loss of QAR 85 million for the H1 of 2026, marking a sharp decline from a net profit of QAR 8 million in the H1 2025. Performance was primarily impacted by lower production and sales volume resulting from regional conflicts and related logistics constraints. While average realized selling prices strengthened, providing partial support to earnings, the positive pricing impact could not fully mitigate the effect of lower production and sales volumes. On a quarter-on-quarter basis, the Chlor-alkali segment reported a net loss of QAR 52 million, compared with a net loss of QAR 33 million in the Q1 of 2026.
Saud Saifuddin: This was partially offset by higher average realized selling prices, which benefited from the tighter market supply condition during the period. Moving to Chlor-alkali segment. The Chlor-alkali segment reported a net loss of QAR 85 million for the H1 of 2026, marking a sharp decline from a net profit of QAR 8 million in the H1 2025. Performance was primarily impacted by lower production and sales volume resulting from regional conflicts and related logistics constraints. While average realized selling prices strengthened, providing partial support to earnings, the positive pricing impact could not fully mitigate the effect of lower production and sales volumes. On a quarter-on-quarter basis, the Chlor-alkali segment reported a net loss of QAR 52 million, compared with a net loss of QAR 33 million in the Q1 of 2026.
Speaker #3: Moving to the crude alkaline segment, the crude alkaline segment reported a net loss of $85 million for the first half of 2026, marking a sharp decline from a net profit of $8 million in the first half of 2025.
Speaker #3: Performance was primarily impacted by lower production and sales volume, resulting from regional conflict and related logistics constraints. While average realized selling prices strengthened, providing partial support to earnings, the positive pricing impact could not fully mitigate the effect of lower production and sales volumes.
Speaker #3: On a quarter-on-quarter basis, the crude alkaline segment reported a net loss of $52 million, compared with a net loss of $33 million in the first quarter of 2026.
Saud Saifuddin: The increase in losses was primarily driven by a 65% decline in sales volume, which more than offset the benefit of a 76% increase in average realized selling prices. Revenue declined by 39%, resulting in a higher segment losses compared to the previous quarter. I will now hand over back to Saud for closing remarks.
Saud Saifuddin: The increase in losses was primarily driven by a 65% decline in sales volume, which more than offset the benefit of a 76% increase in average realized selling prices. Revenue declined by 39%, resulting in a higher segment losses compared to the previous quarter. I will now hand over back to Saud for closing remarks.
Speaker #3: The increase in losses was primarily driven by a 65% decline in sales volume, which more than offset the benefit of a 76% increase in average realized selling prices.
Speaker #3: Revenue declined by 39%, resulting in higher segment losses compared to the previous quarter. I will now hand back over to Saoud for closing remarks.
Saoud Abdulaziz Alabdulghani: Thank you, Saoud. With that, we conclude our call. We would like to thank our investors for their continued trust and support, and we look forward to speaking with you again during the next earning call.
Saoud Abdulaziz Alabdulghani: Thank you, Saoud. With that, we conclude our call. We would like to thank our investors for their continued trust and support, and we look forward to speaking with you again during the next earning call.
Speaker #2: Thank you, Saoud. With that, we conclude our call. We would like to thank our investors for their continued trust and support, and we look forward to speaking with you again during the next earnings call.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.
