Industries Qatar (IQ), one of the region's industrial giants with interests in the production of a wide range of petrochemical, fertiliser and steel products, recorded a net profit of QR2.4bn for the period ended September 30, 2017, slightly down from QR2.7bn reported from a year ago. IQ's earnings per share stood at QR3.9, compared to QR4.5 for the same period of 2016.
The marginally reduced sales volumes, depressed fertiliser prices, and tightened operating margins were the main reasons for the decline in the profitability. Operational and financial performance together with operating costs, are expected to improve further with the ongoing cost and operation optimisation efforts, IQ said in a statement yesterday.
The group's financial and operational performance remained generally solid despite the challenges faced by the steel segment. The group was able to maintain the average price slightly above the previous year, and kept the controllable operating costs below the last year. Production and sales volumes remained relatively flat despite planned and unplanned outages. Additionally, steel segment's results were affected due to a general increase in the global iron ore prices, and utility costs.
Speaking of the overall performance, all segments have reported noteworthy financial and operational performance. Increase in the product prices helped the polyethylene segment to neutralise the reduced sales volumes resulted from the unplanned outages. Fuel additive segment's overall performance was up on the previous year driven by higher prices and volumes. Fertiliser prices improved marginally on last year, while the volumes remaining relatively flat. Steel prices and sales volumes were marginally down on last year with volume reduction were driven by lower production due to slightly higher facility maintenance in the current year.
The group's financial position remains solid as cash across the group stands at QR11.4bn after paying 2016's dividend of QR2.4bn, and periodic debt payments. Total debt stood at QR2.4bn, down QR0.6bn versus December 31, 2016.
Revenue reported under IFRS 11 for the period ended September 30, 2017 was QR3.2bn, a decrease of ~8 percent, over the same period of 2016.

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