(MENAFN- The Peninsula) The Peninsula
Industries Qatar (IQ), one of the region's industrial giants with interests in the production of a wide range of petrochemical, fertilizer and steel products, recorded a net profit of QR5bn for the full year 2018, a significant increase of QR 1.7bn, or 52 percent over the prior year.
IQ's earnings per share reached QR 8.31 from QR 5.48 for the full year 2017. Cash and bank balances across the group reached to a new record of QR13.1bn. The financial year 2018 was extremely successful with the group achieving a number of new records. Sales volumes have increased marginally on last year and reached a new record for the group. Production volumes remained stable despite some planned and unplanned maintenance within some of the facilities, IQ said in a statement.
Total cash and bank balances across the group has reached to QR3.1bn, a new record for the group, whilst total debt across the group now stands at QR26m, making the group almost a debt free entity. Net profit grew significantly, a highly commendable financial and operational performance, albeit product prices came under pressure during the latter part of the year and some of the raw materials and energy costs have seen a significant increase.
The group's sales volumes have marginally increased on last year by 4 percent and reached their highest levels since the group's inception amidst a number of unplanned shutdowns in some production facilities and muted demand in some markets. Sales volumes in the petrochemical segment improved on last year, as the petrochemical production facilities returned to normal levels following unplanned outages in some of the facilities in early 2017. Fertilizer sales volumes remained almost flat despite that the fertilizer trains underwent a few planned and unplanned outages. Sales volumes in the steel segment saw a significant growth on last year due to a change in the marketing and distribution strategy.
Product prices have improved modestly by 12 percent over 2017. Recovery in the crude oil prices throughout most of 2018 has contributed for the slight improvement in the petrochemical prices. Fertilizer prices have improved notably most specifically during second half of 2018. Steel prices have shown a notable increase over 2017 primarily due to increase in raw materials costs and short supply of some key production related consumables.
Revenue reported, under IFRS 11, for the financial year ended December 31, 2018 was QR5.8bn, an increase of 25 percent, versus 2017. This significant year-on-year increase was primarily due to a combined effect of improved sales volumes and product prices in the group's steel segment. The Board of Directors proposed a total annual dividend distribution for the year ended December 31, 2018 of QR3.6bn, equivalent to a payout of QR6 per share and representing a payout ratio of 72.2 percent.
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