IQ reports 57% year-on-year jump in net profit in H1 to QR5.4bn
August 07 2022 08:38 PM
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An aerial view of Qapco facilities in Mesaieed (file). IQ shareholders have approved dividend distri
An aerial view of Qapco facilities in Mesaieed (file). IQ's operations have remained strong as production volumes improved 5% to 8.1mn tonnes.

Doha

Market heavyweight Industries Qatar (IQ) has reported a 57% year-on-year increase in net profit to QR5.4bn for the six month ended June 2022.
The group’s operations remained strong as production volumes improved 5% to 8.1mn tonnes. The restart of the previously mothballed ‘DR-2’ facility with a larger capacity, together with, higher plant operating days noted within the fuel additives segment contributed towards an overall increase in production volumes during the review period.
The plant utilisation rates for the six-month period stood at 97%, while average reliability factor stood at 98%.
Revenue significantly improved by 56% to QR14.3bn. Earnings-per-share (EPS) was QR0.90, versus QR0.57 for the same period last year.
Blended product prices significantly surged by 51% year-on-year to $786/MT. Growth in product prices translated into an increase of QR5bn in group’s net earnings. The price increase was mainly linked to elevated market prices across all the segments.
The group’s financial position continue to remain robust, with cash and bank balances at QR14.8bn as of June 30, 2022, after accounting for a dividend payout relating to the financial year 2021, amounting to QR6bn. Currently, the group has no long-term debt obligations.
The group’s reported total assets and total equity reached QR41.6bn and QR38.9bn, respectively, as of June 30, 2022. The group generated positive operating cash flows of QR5.1bn, with free cash flows of QR4.6bn during the review period.
Qatar Petrochemicals reported a net profit of QR1.5bn; marginally up by 1% versus the same period of last year. Growth in selling prices combined with higher sales volumes, led H1-22 segmental revenue to QR3.9bn, with an improvement of 24% versus the same period of last year.
The fertiliser segment (Qafco) reported a net profit of QR3.3bn, registering an increase of 115% year-on-year, primarily driven by growth in revenue. The segment’s revenue grew by 107% for the current six-month period versus 1H-21, primarily due to improved selling prices.
In June 2022, based on an internal review, Qafco board decided to transfer Qatar Melamine Company’s (QMC) assets to it through a business transfer agreement (merger scheme).
The process is planned to be completed before end of December 2022 and the related formalities are in progress. QMC is a 100% owned subsidiary of Qafco and involved in production of Melamine. The merger is expected to benefit the group in terms of operational and administrative synergies.
Qatar Steel reported a net profit of QR621mn, up 25%. Improved profits was mainly driven by higher revenues, which increased by 11% in the review period. Additionally, the segment’s associate that produces iron oxide pellets, Foulath Holdings, reported commendable financial results against a backdrop of improved operations.



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