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Industries Qatar net profit jumps 52% to QR5 bn in 2018

Industries Qatar net profit jumps 52% to QR5 bn in 2018

Tribune News Network
Industries Qatar (IQ) has reported a net profit of QR5 billion for the year ending December 31, 2018, an increase of 52 percent compared to QR3.3 billion the company achieved in 2017.
The net profit was driven by a combined effect of increased product prices and sales volumes, but partially offset by escalation of raw material costs, IQ said in a statement on Monday.
The company’s earnings per share stood at QR8.31 for 2018. The board of directors has proposed a total annual dividend distribution of QR3.6 billion, equivalent to a payout of QR6 per share and representing a payout ratio of 72.2 percent.
IQ’s 2018 revenue stood at QR5.8 billion, an increase of 25 percent, versus 2017. This significant year-on-year increase was primarily due to a combined effect of improved sales volumes and product prices in the group’s steel segment.
Total cash and bank balances across the group reached QR13.1 billion, a new record for the group, while total debt across the group stands at QR26 million, making the group almost a debt free entity.
The financial year 2018 was extremely successful with the group achieving a number of new records.
The group’s sales volumes have marginally increased on last year by 4 percent and reached their highest levels since the group’s inception amid a number of unplanned shutdowns in some production facilities and muted demand in some markets.
Sales volumes in the petrochemical segment improved on last year, as the petrochemical production facilities returned to normal levels following unplanned outages in some of the facilities in early 2017.
Fertilizer sales volumes remained almost flat despite that the fertilizer trains underwent a few planned and unplanned outages.
Sales volumes in the steel segment saw a significant growth on last year due to a change in the marketing and distribution strategy.
Product prices have improved modestly by 12 percent over 2017. Recovery in the crude oil prices throughout most of 2018 has contributed for the slight improvement in the petrochemical prices.
Fertilizer prices have improved notably most specifically during second half of 2018 due to increased demand from some of the large agricultural economies, increased raw material costs, and regulatory pressure on environmentally non-compliant producers. Steel prices have shown a notable increase over 2017 primarily due to increase in raw materials costs and short supply of some key production related consumables.
Net cash flow across the group for the year ended December 31, 2018 was approximately QR2.8 billion. The group’s operating cash flows were adequate enough to meet capital expenditure requirements, make debt repayment and pay 2017 dividends, the statement said.


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