MOSCOW (MRC) -- Kuwait Styrene Co. (Kuwait City), a joint venture between Kuwait Aromatics Co. and Dow Chemical and the only producer of styrene in Kuwait, announced a 23% decline in 2015 net profit to USD97 million, compared with the year before, said Tradearabia.
TKSC Board Chairman Hadi Abul said, "The year 2015 witnessed a number of developments, such as decreasing oil prices and instability in petrochemical markets. At the same time, TKSC realized considerable net profits due to excellent performance in several fields."
Abul added, "On behalf of TKSC Board, I would like to extend utmost gratitude to our executive management for their outstanding role in the company’s success. In addition, unwavering appreciation to EQUATE Petrochemical Company, Kuwait Paraxylene Production Company, The Kuwait Olefins Company, as well as various government and private bodies for their continuous support of TKSC."
On his part, TKSC CEO Adel Al-Munifi said, "During 2015, the company has realized a number of world class milestones. Despite having a scheduled Turnaround (TA), the actual production of our 450,000 metric tons annually (MTA) plant was increased by 10% while continuing supplies to our solid customers base throughout the world. TKSC maintained world-class operational standards and a zero injury rate. Our fixed cost was lowered by over 20% due to optimization and cost saving plans. Although SM prices in 2015 had a 30% drop, profit margins remained well preserved due to the decrease in the cost of petrochemical raw material."
Al-Munifi noted, "2016 will carry a number of challenges, but we do not expect much fluctuation in prices and the cost of logistics might be lower due to decreasing fuel prices."
As Kuwait’s first and only producer of Styrene Monomer, The Kuwait Styrene Company was established in 2004 as an international joint venture between Kuwait Aromatics Company and The Dow Chemical Company (Dow).
As MRC informed earlier, Kuwait's EQUATE Petrochemical Co is in talks with banks to refinance a USD6 bln bridge loan that it secured last year and was partly used to fund the acquisition of petrochemical company MEGlobal.
EQUATE Petrochemical Company, Kuwait’s first international joint venture in this industry, is the single operator of Greater EQUATE, which includes The Kuwait Styrene Company, Kuwait Paraxylene Production Company and The Kuwait Olefins Company under one fully integrated operational umbrella at Kuwait’s Shuaiba Industrial Area.