IQ net profit at QR1.6bn in first half
09 Aug 2017 - 1:35
Industries Qatar (IQ) has reported a net profit of QR1.6bn in the first six month of this year ended June 30 (H1, 2017), down by nearly 19 percent compared to the corresponding period last year (H1, 2016).
The group’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 ended June 30, 2017 was QR2bn, a decrease of about 17 percent, over the same period of 2016. The earnings per share (EPS) stood at QR2.66 (Q2, 2016: EPS of QR3.29).
IQ is one of the region’s industrial giants with interests in the production of a wide range of petrochemical, fertilizer and steel products.
The group reported a commendable performance, however, the performance in some segments, in particular the operational performance of polyethylene and fertilizer segments, was affected due to some planned and unplanned maintenance during the first half of 2017.
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 fertilizer remained relatively stable, while the prices of steel were marginally down on last year.
The year-on-year variance was primarily due to a modest reduction in the sales volumes driven by a decrease in production of polyethylene and fertilizers.