EQUATE Group Announces Year End 2023 Financial Results
KUWAIT, February 15, 2024 — The EQUATE Group, a global producer of petrochemicals and the world’s leading supplier of Ethylene Glycol, announced its full-year earnings for 2023 this week.
The EQUATE Group reported a total revenue of US$3,135 million in 2023, compared to US$3,947 million in 2022. The Group also reported a net income after tax of US$308 million and EBITDA of US$862 million, compared to US$611 million and US$1,217 million, respectively, for 2022.
While the industry continued to face challenging market conditions, that included macroeconomic uncertainty and cascading effects on global supply and demand, EQUATE performance remained resilient. Leveraging its regional and business strengths and initiatives, as well as its competitiveness, EQUATE capitalized on strong demand growth in higher-value regional markets.
Commenting on the results, Naser Aldousari, President & CEO of EQUATE Group, said: “In 2023, EQUATE Group delivered strong operational performance and completed major turnarounds and maintenance programs while mitigating the impact on performance, despite significant headwinds encountered by the industry across several fronts. EQUATE Group has emerged both stronger and more resilient.
“Our global reliability and the safety of our operations remained uncompromised, and the successful execution of major turnarounds and targeted capital spending contributed to our operational efficiencies, safety and the well-being of our teams, as well as our neighbouring communities and the environment.”
EQUATE Group’s results reflect their uncompromising focus on reliability, close collaboration with stakeholders, and their proactive actions in navigating challenges and market dynamics to deliver a long-term sustainable strong performance.
-ENDS-
ABOUT THE EQUATE GROUP
The EQUATE Group is a global producer of petrochemicals and the world’s leading supplier of ethylene glycol (EG). The EQUATE 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
Disclaimer
This earnings announcement (the Announcement) is for information only. The announcement is based on 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.
MEGlobal and Capital Power Announce a 10-year Renewable Energy Agreement
MEGlobal Canada moving to 100% Renewable Energy for its Alberta sites
EDMONTON, Alberta – March 16, 2022 – MEGlobal Canada ULC (MEGlobal) has entered into a 10-year agreement with Capital Power Corporation (TSX: CPX) to purchase a significant share of renewable energy (126 megawatts) from Capital Power’s Whitla Wind1 facility. The renewable energy is expected to meet the power needs at MEGlobal’s Canadian manufacturing facilities beginning April 1, 2022.
MEGlobal is a subsidiary of EQUATE Petrochemical Company K.S.C.C. (EQUATE) and part of the EQUATE Group. MEGlobal has three operational sites in Alberta, located in Fort Saskatchewan and Lacombe County. These facilities produce ethylene glycol that is used to make essential products such as clothing, coolants and construction materials.
“Purchasing energy from renewable resources such as wind makes good sense for our company and the environment,” said Naser Aldousari, CEO of EQUATE. “This agreement exemplifies EQUATE’s dedication to delivering responsible product growth that meets the needs of the present without compromising the ability of future generations to meet their needs.”
“We’re excited to provide MEGlobal with renewable power for their operations in Alberta. As we work to power a sustainable future for people and planet, we’re committed to developing customized solutions that empower our partners to capitalize on the benefits of clean energy,” said Chris Kopecky, Senior Vice President and Chief Legal, Development and Commercial Officer. “Combined with our other renewable energy agreements, the additional phases of our Whitla Wind facility, representing a total of 151 MW of capacity, are now fully contracted for 100% of the energy generated and approximately 86% of the environmental attributes for 10 years.”
- Whitla Wind consists of 3 phases. Phase 1 (202 MW) is owned by Capital Power (Whitla) L.P. and phases 2 and 3 (151 MW) are owned by Whitla 2 Wind Generation L.P. The renewable energy agreement referred to in this media release is for the capacity and related attributes from phases 2 and 3.
- Comparison numbers in this paragraph are calculated from the U.S. EPA website.
Capital Power is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. We build, own and operate high-quality, utility-scale generation facilities that include renewables and thermal. We have also made significant investments in carbon capture and utilization to reduce carbon impacts and are committed to be off coal in 2023. Capital Power owns approximately 6,600 MW of power generation capacity at 26 facilities across North America. Projects in advanced development include approximately 425 MW of owned renewable generation capacity in North Carolina and Alberta and 512 MW of incremental natural gas combined cycle capacity, from the repowering of Genesee 1 and 2 in Alberta.
About MEGlobal
MEGlobal is a global leader in the manufacture and marketing of ethylene glycol (EG). With a worldwide network, MEGlobal markets its products throughout Asia, the Americas, Europe and the Middle East. MEGlobal embraces the principles of Responsible Care®, focusing on the safety of employees, neighbors, communities and the environment in every aspect of its operations. MEGlobal is a subsidiary of EQUATE and part of the EQUATE Group, one of the world’s largest producers of EG. Visit www.meglobal.biz for more information.
EQUATE Group announces financial results for 2018, reporting a record-breaking EBITDA of $2.12 billion and Net Income After Tax of $1.56 billion
Kuwait, February 03, 2019 – Today, the EQUATE Group announced its fourth quarter (Q4) 2018 and full-year 2018 earnings. In Q4 2018, the EQUATE Group reported an EBITDA of $427 million, compared to $388 million for the same period in 2017. EQUATE Group’s total EBITDA for 2018 stood at $2.12 billion, compared to $1.73 billion in 2017. Net Income After Tax for the year was $1.56 billion, compared to $1.13 billion in 2017. "EQUATERS across the globe defined excellence in 2018,” said Dr. Ramesh Ramachandran, CEO and President of the EQUATE Group. “The record-breaking EBITDA was a result of extraordinary performance across all functions. We had an exceptionally safe year without any recordable EH&S incidents across the globe, a manufacturing volume record at all global sites and a very good pricing environment - notably in the first three quarters - and excellent cost optimization.” Looking ahead to 2019, Ramachandran said, “Global headwinds in the commodity environment and high volatility due to uncertainty of tariffs resulted in a slowdown in the fourth quarter that persists in early 2019. That said, EQUATERS have always overcome challenges and I have every confidence that their expertise and commitment will continue to result in success.” The EQUATE Group maintained its leadership position as the second largest producer of EG globally, with EG production of over 2.5 million metric tons. This market leadership will be further strengthened in the coming months with an additional 750,000 MT in EG capacity as the new Oyster Creek, Texas Site comes on line on the US Gulf Coast. 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 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 for more information. 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 audited financial statements of the Group for the year ended 2018 are not currently available for publication but will be published by the EQUATE Group in due course. 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.
Kuwait Styrene Company Reports USD 211 Million in Net Profit for 2018
Kuwait, January 31, 2019: The Kuwait Styrene Company (TKSC), the first and only Kuwait-based styrene monomer (SM) producer and exporter, today announced realizing a net profit of USD 211 million for the fiscal year ending in December 31, 2018, compared to USD 94 million in 2017. Commenting on the results, TKSC CEO Adel Al-Munifi stated, “TKSC achieved record results in 2018 with an increase of 124% in net profit and a production exceeding our 450,000 metric tons annually (MTA) nameplate production capacity of SM, while we continued to deliver a significant performance in major markets including China, South East Asia and India.” Al-Munifi added, “TKSC’s competitive position witnessed additional growth in 2018 with financial results reflecting continued measures taken to optimize costs and enhance operational reliability and safety, resulting in high-quality production for our expanding customer base. We must note that the US-China trade uncertainty supported firm prices in TKSC’s markets, leading to this unprecedented growth in our overall profitability during 2018.” Since commencing its operations in 2009, TKSC has significantly contributed to the success of its shareholders, as well as to Kuwait’s global industrial and economic presence. Al-Munifi concluded, “I would like to extend utmost gratitude to all TKSC’s shareholders, EQUATE Petrochemical Company, Kuwait Paraxylene Production Company (KPPC) and The Kuwait Olefins Company (TKOC), public institutions and customers for their continued support throughout our remarkable journey.” The Kuwait Styrene Company (TKSC) was established in 2004 as an international joint venture between the Kuwait Aromatics Company (KARO) and the Dow Chemical Company (Dow). TKSC is part of Greater EQUATE, which also includes Kuwait Paraxylene Production Company (KPPC) and The Kuwait Olefins Company (TKOC). The firms are operated by EQUATE Petrochemical Company under one integrated umbrella in Kuwait.
Fostering equality and respect
We believe at EQUATE that our employees are the engine of value creation. Their innovative thinking, determination and dedication are essential to our overall growth. This is why we have set forth the principles on diversity and equal opportunities. We believe in the fair distribution of opportunities, assign tasks to those who have the right competencies and qualifications, and foster a culture of respect and acknowledging our similarities and differences. We carry out our programs and policies without background or gender discrimination across all areas, including recruitment, career progression and allocation of projects.
Helping build a better world
As a global producer of petrochemicals, we ensure that our operations and products help build a better world for tomorrow by providing our global customers with advanced and superior products, and supporting our stakeholders grow in a sustainable world. We’re setting leading examples in best practices, innovation and industrial expertise, while taking responsibility towards our communities.
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