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Middle East Paper Co. (MEPCO) reported strong performance in Q2 2017 compared to Q2 2016 despite lower profit, CEO Sami Ali Al Safran told Argaam said in an exclusive on Monday.
The company’s net profit fell 79 percent year-on-year (YoY) to SAR 18.2 million in Q2, compared to SAR 88.31 million a year earlier.
Adjusting for nonrecurring gain of SAR 91.96 million recognized on a claim for expropriated land and premises in Q2 2016, MEPCO's profit would have surged by 598 percent in the second quarter of this year.
The operating income increased almost four times YoY and rose by 143 percent from the previous quarter, driven by higher sales volume, average selling prices along with a decline in the cost of production per ton, Al Safran said.
MEPCO filed an anti-dumping complaint against GCC imports from Europe for their negative impact on the Gulf market, Al Safran said.
“The company, however, was able to maintain its market share and fulfill client demand despite the drop in selling prices due to dumping,” he added.
MEPCO had earlier attributed the decline in 2016 net profit to a drop in average selling prices of paper products.
Al Safran added that MEPCO will announce any developments on that issue later on, as the complaint is still under investigation by the GCC’s technical secretariat to combat harmful practices.
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