Boubyan Petrochemicals Co. posted a 7 percent jump in full-year profit as it gained from investment in a venture of Dow Chemical Co., said the deputy chairman of the Kuwait-based investor in plastics and chemical ventures.
Net income for the year ended April 30 increased to 22.8 million dinars ($83 million) from 21.4 million dinars a year earlier, the company said in a statement today.
"The main reason behind this rise is the growth in Equate Petrochemical Co.’s profitability," Dabbous al-Dabbous said in an interview. "Equate has forecast profit growth of between 20 percent to 40 percent in 2011 compared with last year."
Equate Petrochemical is a venture between Kuwait’s Petrochemicals Industries Co. and Dow Chemical. Boubyan holds a 9 percent stake in the venture, al-Dabbous said. The company also holds a 24 percent stake in Kuwait’s al-Kout Industrial Projects Co. as well as a 60 percent stake in Olayan Arabian Packaging Co. in Saudi Arabia.
Boubyan’s shares closed unchanged at 580 fils in Kuwait today, giving it a market value of 281 million. The stock has gained 7.4 percent this year, compared with a 10 percent decline in Kuwait’s benchmark index.
Boubyan is one of 15 companies to be included in a new index established by Kuwait’s Stock Exchange for companies with the biggest market value and liquidity, state-run KUNA reported on June 19. "I think that will have a positive impact on the share price," al-Dabbous said.