The Kuwait Styrene Company (TKSC), the only producer of styrene monomer in Kuwait, is celebrating a net profit of $107 million for 2016, compared with $97 million during 2015 - an 11 per cent increase in net profit.
Kuwait industry
TKSC CEO Adel Al-Munifi said the double-digit growth proved that TKSC is structured to weather challenges in the global market and offers a high-quality product that is attractive around the world.
"The company’s increase in profit was driven by several factors such as higher market prices in comparison to feedstock costs due to healthier oil prices, austerity measure leading to lower fixed cost, optimized logistics cost and Six Sigma programmes," said Al-Munifi. "With a strong financial position and an operational strategy to increase our competitiveness, TKSC is set to continue its growth, supported by recovery in prices and cost-optimisation programmes.”
The global styrene monomer (SM) market saw a slow recovery in prices at the end of 2016, which is expected to continue during 2017. Prices have already been on an uptrend in January 2017 by reaching $1,300 per metric tonne, which was $300 per metric tonne higher than January 2016.
"TKSC has consistently maintained world-class operational standards, sustaining profitability as one of the most successful joint ventures established in Kuwait, and adding significant value to the local economy while immensely contributing to the global industry. We thank EQUATE Petrochemical Company, Kuwait Paraxylene Production Company (KPPC) and The Kuwait Olefins Company (TKOC), public institutions and customers for their continued support," noted Al-Munifi.