IQ Declares First Quarter Net Profit of QR 951 Million

Doha, April 19 (QNA) - 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, announced its financial results for the period ended March 31, 2015 with net profit of QR 951 million. An IQ press release said that the group recorded commendable results across all segments during the quarter despite facing significant challenges due to an unprecedented 50% drop in global oil prices over the preceding 12 months. Despite this, the underlying business nevertheless grew, with like-for-like production levels improving by almost 80,000 MT, over the last nine months, and overall utilisation rates in the current quarter remaining within the above industry average historical 95% and 105% range. As a major global producer of internationally traded commodities, the group expected to be impacted by this precipitous decline in oil prices, and budgeted accordingly in the current 5-year budget and business plan. And, year-to-date, financial results and liquidity levels have been broadly in line with the group's expectations. Reported revenue under IFRS 11 for the period ended March 31, 2015 was QR 1.3 billion, a minimal decrease of 0.8%, over the first quarter of the previous year. However, on a like-for-like basis, management reporting revenue - assuming proportionate consolidation under IAS 31 - was QR 3.8 billion, a decrease of 9.4%, versus the same period of 2014. This year-on-year reduction in revenue was primarily driven by a significant reduction in selling prices across all segments following the oil price decline that began in early Q4, 2014. Sales volumes nevertheless were up on last year as the group benefited by comparatively lower number of planned maintenance days in the current year as the group had significantly higher number of planned and unplanned facility maintenance in the last year. Versus the fourth quarter of 2014, reported revenue was marginally up, by 1.3%, while management reporting revenue, assuming proportionate consolidation, was down 20.1%. The quarter-on-quarter revenue reduction was primarily due to a significant reduction in the prices across all segments. Net profit for the period under review was QR 951 million, a decrease of 40%, against the same period of 2014. The significant decrease in net profit was primarily driven by weak product prices following the significant fall in global oil prices. (QNA)