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GPIC profit down to a quarter year on year

by Arabian Oil & Gas Staff on Jun 16, 2016


GPIC saw its 2015 results fall to a quarter of its earnings the year before.
GPIC saw its 2015 results fall to a quarter of its earnings the year before.

Due to the dramatic decline in global oil prices, Bahrain-based Gulf Petrochemical Industries Company (GPIC) reported $47.5mn profit in 2015, four times less than its $190mn a year ago.

The equal stakes joint venture between Bahraini Nogaholding, Saudi Basic Industries Corporation (Sabic) and Kuwaiti Petrochemical Industries Company (PIC) produces ammonia, granular urea, and methanol using local natural gas.

In 2015, it sold a total of 1,091,139 tonnes, including 41,210 tonnes of ammonia, 414,805 tonnes of methanol and 635,124 tonnes of granular urea, said GDN Online.

Despite the staggering drop in profit, the company’s president Dr Abdulrahman Jawahery said he was content with the results considering the hike in oil and gas prices.

“During 2015, global market activity showed mixed signs with the pace of growth remaining uneven across major economies around the world, influenced by the sharp decline in oil prices and lower interest rates, affecting some countries like China which saw a slowdown in economic growth due to lower commodity prices,” he said.

“Also, in response to declining and relatively low crop prices, farmers were forced to reduce the area under cultivation for cereal crops,” he added.


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