Market heavyweight IQ posts QR3.83bn nine-month profit
October 28 2015 11:36 PM

An aerial view of Qatar Petrochemicals facilities in Mesaieed. IQ is the holding company for Qatar Petrochemicals, Qatar Fertiliser and Qatar Steel.

Market heavyweight Industries Qatar (IQ) - a holding company for Qatar Petrochemicals, Qatar Fertiliser and Qatar Steel - has reported a net profit of QR3.83bn on a 12% expansion in overall sales volume in the first nine months of this year.
Sales volumes were “significantly” up on last year as the group benefited by a comparatively lower number of maintenance days in the current year since most of the group’s production facilities completed their planned and warranty maintenance shutdown in 2014. Accordingly the current year production utilisation reached 104.7% (against 98.4% in 2014), an IQ spokesman said.
The consolidated net profit was, however, down 19% year-on-year mainly due to reduced revenues resulting from price deflation across all segments despite higher sales volume.
“However, cost optimisation is underway to improve financial and operational performance across the group,” he said.
Qatar Petrochemicals witnessed a 15% fall in segment profit to QR2.04bn, Qatar Fertiliser by 21% to QR927mn and Qatar Steel by 25% to QR802.19mn, according to its financial statement.
“Significant price deflation was noted across petrochemical and fuel additive segments following the oil price plunge that began in late 2014 and fertiliser prices were moderately down on last year driven by favourable market conditions across some of the key supplier markets,” the spokesman said.
Revenues shrank 12% to QR4.11bn, but cost of sales also fell 10% to QR3.2bn; leading to a 19% decline in gross profit to QR907.28mn.
The year-on-year reduction in revenue was primarily due to a significant reduction in petrochemical product prices following the oil price decline that began in early fourth quarter of 2014 which continued to remain low throughout 2015, as well as on a moderate reduction in the fertiliser product prices.
Other income also fell 32% to QR161.89mn and share of result of joint ventures by 17% to QR2.96bn. Moreover, IQ reported QR15.49mn as share of loss of associates against QR15.64mn gains in the year-ago period.
Although general and administrative costs fell 13% to QR123.97mn and finance costs by 57% to QR18.23mn; its selling expenses rose 17% to QR45.47mn.
Total assets were valued at QR35.3bn, comprising current assets of QR9.64bn and non-current assets of QR25.66bn. Strong liquidity position was maintained as cash across the group reached QR9bn, even after paying the 2014 dividend of QR4.2bn.
Qatar Petrochemicals’ total assets were valued QR9.58bn, Qatar Fertiliser at QR14.75bn and Qatar Steel at QR9.6bn.
Total equity stood at QR33.17bn on a capital base of QR6.05bn and earnings-per-share was QR6.33 at the end of nine-month ended September 30, 2015.

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