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Tadawul-listed Middle East Paper Co.’s (MEPCO) market share rose to 22.5 percent in the second quarter of 2018, chief executive Sami Al Safran told Argaam.
Global cardboard prices increased 15 percent year-on-year (YoY) in Q2, which positively reflected on MEPCO’s selling prices, he said.
Global demand for cardboard rises 3-4 percent each year, he added.
MEPCO’s production capacity is stable at around 500,000 tons per year, as the product specifications and maintenance schedule are predetermined. Any change in production capacity would depend on product type, he said.
Waste Collection and Recycling Co. Ltd. (Wasco) – which is 97 percent-owned by MEPCO – provides the paper producer with a majority of its raw material, and always raises its production capacity in order to meet MEPCO’s production growth, he added.
According to data compiled by Argaam, MEPCO’s net profit more than doubled in H1 2018 to SAR 57 million mainly on higher prices. Net profit for the second quarter jumped 59.09 percent YoY to SAR 28.91 million due to higher prices and lower financing costs.
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