Doha, Qatar: Industries Qatar (“IQ” or “the Group”; QE Ticker: IQCD), yesterday reported a net profit of QR3.3bn for the nine-month period ended 30 September 2023, representing a decline of 53% compared to 9M-22. Earnings per share (EPS) for 9M-23 was QR 0.54versus QR 1.16for 9M-22. Group revenue for 9M-23 declined by 36% to reach QR13bn as compared to QR20.1bn reported for 9M-22.
The Group’s operations continue to remain strong as production volumes for the current year improved by 2% to reach 12.7million MT’s versus 9M-22.This improvement in production was largely driven by higher operating rates, and better plant availability across the group. Plant utilization rates for 9M-23reached100%, while average reliability factor stood at 98%.This reflects the Group’s commitment to operational excellence, while ensuring plant reliability and unwavering importance to HSE.
On a quarter-on-quarter basis, production volumes inclined by 9% versus 2Q-23, with fertilizer segment reporting a notable increase in production as the segment underwent facility maintenance shutdowns during Q2-2023.
In 3Q-23, the Group’s net earnings inclined by 30% compared to 2Q-23, reaching QR1.2bn. The relationship between sales volume and selling price played a pivotal role in balancing revenue generation on a quarter-on-quarter basis, contributing significantly to this notable rise in earnings. The improved profitability was primarily driven by a reduction in operating costs, contributing QR270m to the net profit position. The operating costs improvement primarily noted across fertilizer segment with segment operating costs normalized following consumption of its previously held expensive inventory. Additionally, a 2% increase in selling prices in line with global commodities markets has positively impacted net earnings by QR84m. However, a minor decrease in sales volume, predominantly attributed to lower volumes reported in the steel segment, coupled with other costs, had a marginal negative impact. Consequently, this led to a sequential partial decrease of QR75m in the group’s bottom line.
Steel segment reported a net profit of QR409m down by 47% versus last year. Lower segmental earnings were mainly driven by lower revenues, which decreased by 7% versus 9M-22. The earnings were also impacted by higher volume related operating expenses, and marginally reduced other operating income. The combined effect of lower prices and increased operating expenses resulted in a notable decrease segment’s profitability. Industries Qatar will host an Earnings call with investors to discuss the latest results, business outlook and other matters on Thursday, October 26 at 1:30 pm Doha time. The IR presentation that accompanies the conference call will be posted on the ‘financial information’ page within the Investor Relations section at IQ’s website.
