KUWAIT CITY - THE net profits of Kuwait's Equate Petrochemicals Co slumped by 25.3 per cent in 2009, falling for the second year running due to lower demand, the company's president said on Sunday.

Equate, a joint venture with the US Dow Chemical, posted a net profit of US$510 million (S$720 million) in 2009, down from $683 million the previous year, Hamad al-Terkait, who is also the CEO, told a press conference. The company, which has made massive investments over the past decade, posted a profit of $769 million in 2007.

'The petrochemicals market in general deteriorated last year and demand was lower than in 2008 ... and prices were 40 per cent lower,' Mr al-Terkait said, adding that earnings were still 29 per cent higher than expectations.

Equate is a multi-billion-dollar joint venture between Dow Chemical and state-owned Petrochemical Industries Co (PIC), with 42.5 per cent each. The private firms Boubyan Petrochemical Company and Al-Qurain Petrochemicals hold nine per cent and six per cent respectively.

Equate, which began operations in 1997, has undertaken massive expansion in recent years. It has a total production capacity of 5.2 million metric tonnes a year of mainly polyethylene, ethylene glycol and styrene, in addition to other derivative products, Mr al-Terkait said.

Last year, it produced more than three million tonnes, almost all of which has been exported to Asia, the Middle East and Europe, the official said. Asia accounts for 60 per cent of the exports and the Middle East 30 per cent.