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 QR6.3bn for the nine months ended September 30, 2013.
In comments issued to the Qatar Exchange (QE), H E Dr. Mohammed bin Saleh Al Sada, the Minister of Energy and Industry and Chairman and Managing Director of Industries Qatar, said: “IQ continued its record-breaking full year results in 2012 with commendable year-to-date earnings…The net profit is one of the group’s strongest nine-month results. This result was supported by strong incremental sales volumes following the launch of over QR12.8bn of facilities that added 2 million tonnes of urea and 240,000 MT of LDPE capacity during 2012. Furthermore, total cash and short-term deposits across all of the group’s companies have grown by QR2bn over the same period of last year to reach QR10.3bn by the close of September 30, 2013 indicating the group’s enhanced cash position.”
Abdulrahman Ahmad Al Shaibi, Chief Coordinator, Industries Qatar, said the group’s strong year-on-year volume growth was followed by the launch of new petrochemical and fertiliser facilities last year as it also maintained exceptional petrochemical and steel EBITDA margins. “However, were adversely impacted by continued significant fertiliser price deflation, in line with international trends, and heightened fertiliser operating costs following increases in natural gas rates under the supply and purchase agreement with Qatar Petroleum.”
The Group’s reported revenue for the nine months ended September 30, 2013 was QR4.4bn, a decrease of QR0.4bn, or 8.2 percent, on the restated results for the same period of 2012. However, on a like-for-like basis under the previous accounting standard, reported revenue would have been QR14.4bn, an increase of QR0.2bn, or 1.5 percent.
The petrochemical segment revenue for the first nine months of the year was QR3.8bn, up QR0.4bn, or 11.5 percent, as against the same period of 2012. The segmental performance can be entirely attributed to significantly-improved sales volumes following the commercial launch of the group’s third LDPE plant in the third quarter of 2012.
“Petrochemical prices remain generally weak with most key product prices down on the same period of 2012,” Al Shaibi said. Petrochemical revenue for the third quarter of 2013 was QR1.4bn, up QR0.3bn, or 23.9 percent, on the previous quarter.
The fertiliser segment closed the period with revenue of QR4.8bn, up QR0.2bn, or 3.8 percent, on the corresponding period of 2012. The segmental improvement was exclusively due to incremental urea sales volumes following the commercial launch of Qafco 5 and 6 during the second half of the previous year and subsequent ramp-up, as weighted average urea prices continued their negative trend, in line with international prices, closing over 15 percent down on the same period of 2012.
Revenue for the third quarter was QR1.3bn, a reduction of QR0.4bn, or 22.1 percent, on the previous quarter. This reduction was due to weak urea prices.
On the ongoing weak nitrogenous fertiliser price outlook, Al Shaibi said: “IQ is in a uniquely strong position to weather the current downturn in global fertiliser prices that has seen the group’s quarterly weighted average urea price drop by almost 40 percent since the current commodity cycle high of $487 / MT in the third quarter of 2011.
The steel segment’s recorded revenue for the period was QR4.4bn, a decrease of QR0.4bn, or 8.2 percent as against last year, while third quarter sales totaled QR1.3bn, down QR0.1bn, or 5.9 percent over the second quarter of 2013. On the Group’s profits and profitability, Al Shaibi said: “The group recorded year-to-date earnings of QR6.3bn, a decrease of QR 0.3bn, or 4.8 percent, against the same period of 2012. The Peninsula