Doha: Industries Qatar yesterday reported a net profit of QR7bn for the nine-months period ended September 30, representing an increase of 28 percent compared to the same period last year.
Macroeconomic environment remained volatile throughout the year, as result of geopolitical uncertainty and recessionary fears on account of inflationary pressures and hawkish stance on interest rates by most of the Central banks.
On overall basis, market prices across the Group’s basket of products have declined versus 2Q-22 due to cautious consumer demand on account of macro-headwinds, coupled with comparatively lower crude prices. However, product prices remained strong versus last year on account of post-pandemic recovery phase.
Production slightly increased by two percent compared to the previous quarter, as incremental production in fertiliser and petrochemical segments were almost offset by lower steel production volumes.
Revenue for the current period significantly grew by 42 percent to reach QR20.1bn as compared to QR14.1bn reported for the same period of 2021. Earnings per share (EPS) for 9M-22 was QR 1.16 versus QR 0.91 for the same period of last year. Group’s financial performance for the nine-months period September 30, was largely attributed to factors including blended product prices which significantly surged by 35 percent versus 9M-21 and reached $735/MT.
Sales volumes for the period increased by six percent versus the same period of last year, primarily driven by higher plant operating rates and contributed QR1.0bn in Group’s net earnings growth for the current period versus 9M-21.
The Group operating cost increased by 53 percent versus same period last year, primarily linked to higher variable cost on account of increased sales volumes and end-product price indexed raw material cost.
Compared to 3Q-21, the Group revenue for 3Q-22 increased by 18 percent notably due to better sales volumes (+10 percent) and higher selling prices (+7 percent).
The Group’s financial position continue to remain robust, with cash and bank balances at QR17.1bn as of September 30, after accounting for a dividend payout relating to the financial year 2021 amounting to QR6.0bn. Currently, the Group has no long-term debt obligations.
Group’s reported total assets and total equity reached QR43.1bn and QR40.5bn, respectively, as of 30 Septembe. The Group generated positive operating cash flows of QR 7.5bn, with free cash flows of QR6.9bn during the first nine months of 2022.
Petrochemicals segment reported a net profit of QR2.1bn for the nine-months ended September 30, marginally down by 5 percent versus the same period of last year. Growth in selling prices combined with higher sales volumes, led segmental revenue to reach QR5.5bn for the current nine-months period, with an improvement of 17 percent versus the same period of last year. Revenue for the current quarter declined by 19 percent versus 2Q-22. This decline was primarily driven by a general decline in the petrochemical prices at the macro-level.
Petrochemical prices on average decreased by 24 percent largely attributable to challenging macroeconomic environment and weaker crude prices noted during the quarter. Reduction in prices led to segmental profits to decline by 32 percent, to reach QR568m for 3Q-22.
Industries Qatar will host an Earnings call with investors to discuss the latest results, business outlook and other matters on November 2 at 1:30 pm Doha time. The IR presentation that accompanies the conference call will be posted at IQ’s website.
