Market heavyweight Industries Qatar — IQ, a holding company for petrochemicals, fertiliser and steel units — has reported a 34% jump in January-March net profit to QR2.55bn mainly due to larger share of gains from joint ventures and better cost management.
Revenues, otherwise, were down 4% to QR1.67bn but direct costs fell faster by 10% to QR1.13bn, thereby helping the company to report an 8% gain in gross profit to QR531.4mn, according to its financial statement filed with the Qatar Exchange.
Its share of results from joint ventures spurted 34% to QR1.99bn with Qatar Fertiliser contributing QR1.04bn, Qatar Petrochemical (QR762.59mn) and Qatar Steel (QR190.15mn). IQ also reported gains of QR18.05mn as share of results of associates against loss of QR31.01mn in the previous year period.
Income from investment rose 16% to QR38.25mn and other net income more than doubled to QR37.50mn.
However, general and administrative expenses fell 15% to QR41.74mn, selling and distribution costs by 14% to QR9.50mn and finance costs by 16% to QR14.67mn.
Total assets were valued at QR33.38bn comprising current assets of QR8.91bn and non-current assets of QR24.47bn.
Total equity stood at QR28.24bn on a capital base of QR6.05bn and earnings-per-share was QR4.21 at the end of March 31, 2013.
Reuters adds: The Gulf’s second-largest chemical producer by market value after Saudi Arabia’s Saudi Basic Industries Co (Sabic), IQ beat expert estimates.
Analysts polled by Reuters on average expected the company to post quarterly profit of QR2.2bn.
“We continue to consider IQ our top pick among Qatari equities,” QNB Financial Services said after the results were announced.
“With major expansions now complete, significant cost-advantaged volume growth in fertilisers and petrochemicals should allow for decent earnings growth in 2013 even if economic conditions deteriorate.”
Shares in IQ closed 1% higher yesterday, prior to the results being announced.
Petrochemical prices have strengthened in recent years, but worries persist over the impact of a global slowdown on industry earnings in the world’s top oil exporting region.