Market heavyweight Industries Qatar (IQ) has reported net profit of QR2.4bn in the first nine months of this year, exceeding the group’s budget estimates.
The group’s financial and operational performance remained generally solid despite the challenges faced by the steel segment, its spokesman said. 
The company – which is the holding company of Qatar Petrochemicals (Qapco), Qatar Fertiliser, Qatar Steel and Qatar Fuel Additives – had reported a higher net profit of QR2.7bn in the corresponding period of 2016.
“Marginally reduced sales volumes, depressed fertiliser prices, and tightened operating margins were the main reasons for the decline in the profitability,” the spokesman said.
The group was able to maintain the average price slightly above the previous year, and kept the controllable operating costs below the last year. Its general and administrative expenses were down about 8% to QR155.81mn and finance costs by about 23% to QR7.72mn.
“The operational and financial performance together with operating costs, are expected to improve further with the ongoing cost and operation optimisation efforts,” he said.
Revenue for the nine-month ended September 30, 2017 was QR3.2bn, a decrease of 8% over the same period of 2016. The year-on-year decrease was due to a combination of factors including a slight decrease in sales volumes and prices. The production and sales volumes remained relatively flat despite planned and unplanned outages, the spokesman said, adding the steel segment’s results were affected by a general increase in the global iron ore prices, and utility costs.
The increase in product prices helped the polyethylene segment to neutralise the reduced sales volumes resulting from the unplanned outages, the spokesman said, adding the fuel additive segment’s overall performance was up on the previous year driven by higher prices and volumes. Fertiliser prices improved marginally on last year, while the volumes remained relatively flat. Steel prices and sales volumes were marginally down on last year with the volume reduction being driven by lower production due to slightly higher facility maintenance in the current year.
The company’s share of results of associates grew almost 15-fold to QR74.48mn and that of joint ventures expanded by about 6% to QR1.79bn during the review period.
The group’s financial position remains solid as cash across the group stands at QR11.4bn after paying 2016’s dividend of QR2.4bn, and periodic debt payments. Total debt stood at QR2.4bn; down QR0.6bn from December 2016 end levels.
Total assets were valued at QR34.54bn, comprising current assets of QR9.91bn and non-current assets of QR24.63bn.
The company’s earnings-per-share stood at QR3.9 at the end of nine-month ended September 30, 2017 compared to QR4.5 in the year-ago period.