Industries Qatar Announces Double-Digit Growth in H1 of 2018

Doha, August 08 (QNA) - Industries Qatar announced Wednesday its financial results for the half-year ended June 30 of 2018 with net profit of QR 2.5 billion, up QR900 million or 56 percent compared to the same period of last year. Earnings per share for the period were at QR 4.15, compared to QR2.66 for the corresponding period of 2017. The results are also well ahead of the group budget expectations for 2018. Improved product prices, stable sales volumes, efficiently managed operating assets base and continued focus on cost improvements were the driving forces behind this impressive performance. The groups' sales volumes have improved on last year, despite a number of planned and unplanned shutdowns in some facilities. Polyethylene sales improved through higher production, as the segment was on an extended unplanned shutdown during the first half (specifically during Q1, 2017) of 2017. Recovery in the global demand has aided the group's fertilizer segment, while the sales of steel products have improved due to the change of geographical mix. Product prices across most segments have moderately increased versus the same period of 2017. Polyethylene prices have started to stabilize, while fuel additive prices have improved notably compared to last year. The stability of crude oil prices has supported both polyethylene and fuel additive prices to remain strong throughout the year. Fertilizer prices have shown a modest rise driven by tightening of supplies, and a general recovery in demand. Steel prices remain strong as prices in the current year have steadily risen. Increase in raw materials costs, resurgence of demand in some geographies were the key factors those contributed to the increase in the steel prices. The groups financial position remains solid as cash across the group stands at QR 10.2 billion after paying 2017s dividend of QR 3.0 billion, and periodic debt payments amounting to QR 0.3 Billion. Total debt across the group now stands at QR 0.2 billion, down from QR 0.5 billion as at 31 December 2017. Revenue reported under IFRS 11 for the period ended 30 June 2018 was QR 3.0 billion, up significantly by 50 percent on last year. A combination of moderate improvement in sales volumes and selling prices has contributed for this significant revenue growth. (QNA)