Kuwait achieved profits of 2.29 billion dinars through participation in foreign petrochemical projects, through the Petrochemical Industries Company, since 1979 until now, which proves the feasibility of petrochemical investments outside Kuwait and its annual return on investment amounting to 73% as an average of the last 20 years.
Data available shows the largest share of profits to date came from the “EQUATE” project in Kuwait, Canada and Italy, with a value of 1.32 billion dinars. Thus, the approximate annual return on investment is 73%, and the number of capital recovery times to date is 14.6 times, according to a local Arabic daily.
The data showed that Kuwait’s participation with Dow Chemical Company in the MI Global project in Canada and Italy achieved profits for Kuwait amounting to 637 million dinars, and the number of capital recovery times reached 3.2 times, while the approximate annual return on investment was an average during the last 20 years, 27%.
The cost of the Petrochemical Industries Company’s participation in the project amounted to 198.5 million dinars in 2004, and the project was exited in 2015, when EQUATE acquired MI Global as part of investment restructuring plans.
The participation of the PIC in the Gulf Petrochemical Industries Company in the Kingdom of Bahrain and through both the Oil and Gas Holding Company and the Saudi company SABIC is one of the oldest international foreign participations of Kuwait in the petrochemical sector, where participation took place in 1979 and the cost of participation amounted to 15.2 million dinars, and the data revealed that Kuwait’s total share of the profits in this participation amounted to 264 million dinars, bringing the number of capital recovery times to date 17.4 times, and the approximate annual return on investment amounted to 71%.
As for the participation of the Petrochemical Industries Company in the South Korean company SK in 2016, profits amounted to 22 million dinars, bringing the number of capital recovery times to date 0.7 times, and about 12% the approximate annual return on investment, knowing that the cost of Kuwait’s participation in the project is 30.3 million dinars.
Finally, the company’s participation in the “SKC” company, the value of Kuwait’s participation is about 141.5 million dinars, and the participation began in 2020, and the company’s total share of profits has reached 38 million dinars to date, bringing the number of capital recovery times to date 0.3% and the approximate percentage of return on the investment is 13%.
Sources stated that the PIC is distinguished by the careful selection of its investments, whether local or international, as its investments achieved great returns through these participations, with an average return on investment exceeding 600%, which indicates its keenness in choosing opportunities with high financial and technical returns, which positively affects the profitability of the company and the Kuwait Petroleum Corporation in particular and the country’s economy in general.
It is worth noting that the Petrochemical Industries Company produces more than 13 products, the number of the company’s employees is 500, and the Kuwaitization rates are 92.8%, while the company has 9 local and international strategic partnerships, and the production capacity of the company is 9 million tons annually, while the capital is 600 million dinars. .
The Petrochemical Industries Company is considered one of the giant companies in the petrochemical industry in Kuwait, the region and the world, and it has a leading and distinguished role in the oil sector in terms of leading economic diversification inside Kuwait and ensuring sustainable growth. Since its establishment in 1963, the company has worked to diversify its investment portfolio on the local and international scales It has become a leader in the petrochemical industry in the Middle East, and 70% of the products are produced locally through strategic partnerships and joint ventures around the world.
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