DOHA: Industries Qatar (IQ), the region’s industrial giant with interests in the production of a wide range of petrochemical, fertiliser and steel products, recorded a net profit of QR4.7bn for the nine months ended September 30, 2014.
The current year was expected to be challenging for the group following the outstanding results of 2013 and the major planned maintenance of the first half of this year. However, results noticeably improved in the third quarter with the return to normal operations. Consolidated net profit improved by a significant 50.1 percent versus second quarter earnings, with the petrochemical and fertiliser segments registering quarter-on-quarter growth of 73.3 percent and 86.7 percent, respectively.
Earnings were also up against the third quarter of 2013 with a creditable 6.3 percent positive variance further emphasising the strength of the current quarter’s results. The group welcomed the new members to the Board of Directors — the Minister of Economy and Commerce H E Sheikh Ahmed bin Jassim bin Mohamed Al Thani (Vice Chairman), the Minister of Finance H E Ali Sherif Al Emadi, and Dr Ibrahim Al Ibrahim.
The group earnings in 2014 were supported by the launch and subsequent ramp-up of Qatar Steel’s EF-5 facility in the first quarter, and Qafac’s CDR plant in the third quarter, as well as by strong key petrochemical product prices.
The group’s liquidity position remained strong with cash held across all group companies after distributing the previous year’s record QR6.7bn dividend, of approximately QR 8bn.
Reported revenue for the third quarter was QR1.5bn, a decrease of QR0.3bn, or 15.8 percent, compared to the second quarter. Assuming proportionate consolidation, management reporting revenue was QR4.9bn, an increase of QR0.4bn, or 9.9 percent, against the previous quarter.
Petrochemical revenue for the first nine months was QR5bn, a moderate year-on-year decrease of QR0.2bn, or 4.2 percent. Petrochemical revenue for the third quarter was QR2bn, an increase of QR 0.6bn, or 37.8 percent, on the previous quarter.
The fertiliser segment closed the nine months with a revenue of QR3.9bn, a decline of QR1bn, or 19.9 percent, versus the same period of 2013. Revenue in the third quarter was QR1.3bn, significantly up on the last quarter by QR0.2bn, or 14.6 percent.
Revenue in the steel segment totalled QR4.7bn for the first nine months of 2014, a moderate increase of QR0.2bn, or 5.4 percent, against the same period of 2013. The benefit to the group’s steel business of the launch and initial ramp-up of the new EF-5 facility in the first quarter of 2014, and the consequent boost in billet production volume, was partially offset by moderate re-bar price deflation, reduced operating days due to planned and unplanned disruption, and strong prior year comparatives. Consolidated EBITDA for the nine months was QR4.9bn, a decrease of QR1.6bn, or 24.8 percent, on the same period of 2013. Year-to-date, the group’s EBITDA was QR4.9bn, with the business being impacted by reduced sales volumes following extensive planned preventive maintenance and warranty shut-downs during the first half of the year, weak urea prices and heightened operating costs in the petrochemical and steel segments.
The QR4.7bn net profit reported for the first nine months of 2014 was a decrease of QR1.6bn, or 25.5 percent, against the corresponding period of 2013, with the year-on-year movement attributable to the same reasons as the EBITDA variance. Consolidated EBITDA for the third quarter was QR 1.9bn, an increase of QR 0.6bn, or 49.1 percent, on the second quarter of 2014. Net profit for the third quarter was QR 1.9bn, an increase of QR 0.6bn, or 50.1 percent, versus the prior quarter, with the quarter-on-quarter movement attributable to the same reasons as the EBITDA variance.The Peninsula
