Kuwait, August 31, 2020 – The EQUATE Group, a global producer of petrochemicals and the second largest producer of ethylene glycol in the world, today announced its second quarter (Q2) 2020 earnings, reporting $159 million in EBITDA – a 31% decrease from $231 million in Q2 2019, and $693 million in revenue, a 16% decrease from $822 million in Q2 2019. Net income after tax stood at $27 million in Q2 2020, a 79% decrease from $126 million in the same period last year.
Despite unpredictable global challenges EQUATE’s facilities around the world continued to operate safely and maintain production rates. The company remains the leading low-cost producer with 100% sellout of all its products globally. This includes EQUATE’s US Gulf Coast plant production, which began operating in October 2019, and is already at 15% above nameplate capacity.
In order to effectively manage debt liability, in Q2 EQUATE completed a $1.6 billion dual tranche issuance and secured $300 million with local banks for a tenor of three years to re-finance $1.9 billion in bank loans.
Commenting on the results, Dr. Ramesh Ramachandran, CEO and President of the EQUATE Group, said: “Despite significant global headwinds, EQUATE EBITDA margins are above 29% of sales due to cost control and our market-leading position across the globe. The company has a well-balanced debt maturity profile, reducing costs and providing stability amidst current market conditions.”
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 Company (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 EQUATE 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.
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.