Industries Qatar (IQ) – a holding entity for Qatar Petrochemicals, Qatar Fertiliser, Qatar Steel and Qatar Fuel Additives – has reported a 33% jump year-on-year in net profit to QR928mn in the first quarter of this year, far exceeding its budget for the period.
“The year-on-year improvement (in 2017) was primarily due to a recovery in the product prices, as the first quarter of 2016 witnessed significantly lower prices due to the depressed economic environment prevailing at that time, and there was also reduced operating costs.” an IQ spokesman said.
The quarter-on-quarter improvement was mainly due to the absence of one-off expenses in the current quarter, as the group recognised a few one-off expenses in the fourth quarter of 2016, he added.
Highlighting that all segments reported improved performance, although the performance in some segments, in particular the polyethylene segment, was affected due to some unplanned outages, the spokesman said the first quarter’s financial performance far exceeded the group’s budget expectations for the first quarter of 2017.
Overall, product prices remarkably recovered versus the first quarter of 2016 while a slight improvement was noted against the last quarter of 2016. Petrochemical prices demonstrated marked improvement on the same period of last year as the prices remained depressed during the first quarter of 2016 due to low crude oil prices.
Fertiliser prices have also shown a “significant” recovery from a historical low during early to mid-2016. This recovery was fuelled by reduced global supply and rising costs for some large producers, and steel prices on the other hand fluctuated within a narrow range due to demand and supply related factors.
The group’s reported revenue for the period ended March 31, 2017 was QR1.1bn, marginally down on the same period of last year, owing to a slight decrease in the sales volumes.
The group’s financial position, as measured by the asset levels, liquidity and debt position continue to remain strong as cash across the group stands at a solid QR9.9bn after paying 2016 dividend of QR2.4bn.
Outlining that total debt stood at QR2.8bn, down QR0.1bn versus December 31, 2016 and exhibiting the group’s strong leverage position, the spokesman said “this stable financial position re-affirms the group’s ability to withstand tough trading conditions.”
Total assets were valued at QR33.35bn comprising current assets of QR8.85bn and non-current assets of QR24.5bn.
The company’s total equity stood at QR31.99bn on a capital base of QR6.05bn and earnings-per-share was QR1.53 at the end of March 31, 2017.

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