IQ Announces 57% Year-on-Year Net Profit Increase in H1 to QR 5.4 Billion

Market heavyweight Industries Qatar (IQ) reported a 57% year-on-year increase in net profit to QR 5.4 billion for the six months ended June 2022.
The group’s operations remained strong, with production volumes increasing by 5% to 8.1 million tonnes. The restart of the previously mothballed “DR-2” facility with greater capacity, as well as the increase in the number of plant operating days seen in the fuel additives segment contributed to an increase overall production volumes during the period considered.
Plant utilization rates for the six-month period were 97%, while the average reliability factor was 98%.
Revenue improved significantly by 56% to QR 14.3 billion. Earnings per share (EPS) was QR 0.90 compared to QR 0.57 for the same period last year.
Blended product prices increased significantly by 51% year-over-year to $786/MT. The growth in product prices resulted in a QR 5 billion increase in the group’s net profit. The price increase is mainly related to high market prices in all segments.
The group’s financial position remains strong, with cash and bank balances at QR 14.8 billion as of June 30, 2022, after taking into account a dividend payment relating to the financial year 2021, amounting to 6 billion QR. Currently, the group has no long-term debt.
The group’s total assets and total reported equity reached QR 41.6 billion and QR 38.9 billion respectively as of June 30, 2022. The group generated positive operating cash flow of 5.1 billion QR, with free cash flow of QR 4.6 billion during the reporting period. .
Qatar Petrochemicals reported net profit of QR 1.5 billion; up slightly by 1% compared to the same period last year. Sales price growth, combined with higher sales volumes, drove S1-22 segment revenue to QR 3.9 billion, improving 24% over the same period of the year. ‘last year.
The Fertilizer segment (Qafco) recorded a net profit of QR 3.3 billion, registering a 115% year-on-year increase, mainly driven by revenue growth. Segment sales increased 107% for the current six months compared to HY-21, mainly due to improved selling prices.
In June 2022, based on an internal review, Qafco’s Board of Directors decided to transfer the assets of Qatar Melamine Company (QMC) to Qafco through a business transfer agreement (merger program ).
The process should be completed before the end of December 2022 and the associated formalities are in progress. QMC is a 100% subsidiary of Qafco and involved in the production of melamine. The merger should benefit the group in terms of operational and administrative synergies.
Qatar Steel recorded a net profit of QR 621 million, up 25%. The improvement in profits is mainly due to the increase in revenues, which increased by 11% during the period under review. Additionally, segment partner that produces iron oxide pellets, Foulath Holdings, reported commendable financial results amid improved operations.

Comments are closed.