The country’s industrial giant Industries Qatar has posted a net profit of QR1.6bn in the first half of this year, IQ said yesterday.
IQ has direct holding of shares in the following subsidiary and joint venture companies — Qatar Steel Company, Qatar Petrochemical Company, Qatar Fertiliser Company and Qatar Fuel Additives Company.
Overall, the group reported a commendable performance. However, the performance in some segments, in particular the operational performance of polyethylene and fertiliser segments, was “affected due to some planned and unplanned maintenance” during the first half of 2017.
IQ said, “Prices, most specifically the prices of polyethylene and fuel additives, have improved on last year as prices troughed during first half of 2016 on the backdrop of depressed crude oil prices, which prevailed in early 2016. On the other hand, prices of fertiliser remained relatively stable, while the prices of steel were marginally down last year.
IQ’s financial position remains solid as cash across the group stands at QR10.2bn after paying 2016’s dividend of QR2.4bn and periodic debt payments.
Revenue reported under IFRS 11 for the period that ended on June 30 was QR2bn, a decrease of 17%, over the same period of 2016. This year-on-year variance was primarily due to a modest reduction in the sales volumes driven by a decrease in production of polyethylene and fertilisers. The impact of reduced volumes was partially negated by the improved product prices, most notably the prices of petrochemicals.
H1 net profit, IQ said, was down 19% compared with the same period in 2016 with an EPS of QR 2.66 (Q2, 2016: EPS was QR3.29).
“The reduction in the net profit was predominantly driven by the lower revenues resulting from a slight decrease in sales volumes across most operating segments. Operational performance together with operating costs, are expected to improve further with the on-going cost optimisation programmes,” IQ said.
The group is closely monitoring the effect of the blockade and is amending the flow of operations and activities when deemed necessary.
The financial position of Industries Qatar, which owns Qapco, remains solid as cash across the group stands at QR10.2bn after paying 2016’s dividend of QR2.4bn and periodic debt payments.
