Satyendra Pathak
Doha
Industries Qatar held its Ordinary General Assembly meeting on Wednesday where the shareholders approved the board’s recommendation for a dividend payment of QR0.78 per share for 2023, representing 78 percent of the nominal share value.
Addressing shareholders on the occasion, Minister of the State for Energy Affairs and Industries Qatar Chairman HE Saad Sherida Al Kaabi said, “Industries Qatar achieved commendable financial performance during a year marked by challenges in the global macroeconomic environment, which resulted in uncertainties impacting the supply and demand for most downstream products, leading to price fluctuations. However, we were successfully navigating challenges related to weakened global macroeconomic and cautious consumer spending to combat inflation and rising interest rates.”
He said, “The Group delivered commendable financial and operational performance, this dedication was evidenced by our focus on our people, ensuring plant reliability, and our unwavering commitment to the highest standards for health, safety, and the environment (HSE), all while pursuing sustainable growth aimed at creating additional value for our shareholders.”
As the Group continues its strategic initiatives, he said, “Qafco-7 is on track and expected to launch during 2026, further boosting our ammonia production volumes. Qafco will also operate trains 1 and 2, solidifying our position as a renowned global producer of nitrogen-based fertilizers. The PVC project is progressing as per schedule, and upon completion, it will become a local producer for PVC, bolstering local industries.”
In the steel segment, he said, “Qatar Steel strategically consolidated the market by acquiring Al-Qataria Steel. This acquisition brings new product diversification capabilities, such as wire-rod coils.”
“Industries Qatar achieved a net profit of QR4.7 billion and an EPS of QR0.78. Recognising current and future capital projects and the evolving economic landscape, the board of directors proposes a total annual dividend distribution equivalent to 100 percent of Industries Qatar’s net earnings for the year, equating to QR 0.78 per share for the financial year ended on 31 December 2023,” he said.
“In navigating this challenging landscape, we relied on strategic foresight and decisive action, resulting in operational and financial success. We remain committed to sustainable growth, diversification, and creating value for our shareholders,” he said.
QatarEnergy Manager Privatized Companies Affairs Abdulla Yaaqob Al Hay said, “The year 2023 has its own challenges amid market volatility on the supply and demand sides, coupled with higher Inflation, rising interest. Despite these headwinds, we achieved stable operations and commendable financial results, demonstrating our resilience.
“Our low-cost operating model, founded on principles of economies of scale, integration, and operational excellence, has consistently demonstrated its value by showcasing remarkable agility.”
He said, “Muntajat, our strategic partner for marketing and distribution, has played a crucial role in helping us sustain our global market presence. Their proactive support in identifying market opportunities has been key to maintaining our competitive edge, ultimately reflecting on our financial and operational performance.”
In 2023, he said, “We spent QR 2.8 billion on capital expenditures (CAPEX), this included QR1 billion for the Qafco-7 blue ammonia project and QR 137 million for the new PVC facility partnership, in addition to other capital expenditures in relation to maintenance, safety, environment and sustainability.
“As evidence of our commitment to sustainable growth and efficiency, Industries Qatar plans to invest QR10.8 billion over the next five years, prioritising the completion of current projects including asset integrity, operational efficiency, reliability, cost optimization, and environmental sustainability.”
“These investments ensure the long-term health of our operations and contribute to an environmentally sustainable future. From a financial performance perspective at the Group level, Group revenue for the year ended 31 December 2023 amounted to QR 16.9 billion, with a decrease of 34 percent over last year. This reduction was in line with the decline in average realized selling prices by 34 percent, amid macro-challenges,” he said.
The Group’s net profits decreased by 46 percent compared to the last year to reach QR 4.7 billion for the year ended 31 December 2023, mainly driven by reduced product prices leading to lower revenues partially offset by improved operating and feedstock costs.
The Group’s operations continue to remain strong as production volumes for the current year remained stable against last year and stood at 16.8 million MT’s. This stability in production was largely driven by stable operating rates.
Group’s sales volumes marginally decreased by 1 percent versus last year, primarily driven by prevailing market conditions in all operating segments except the steel segment.
The Board of Directors proposes distributing 100 percent of 2023 net earnings, equating to a total annual dividend distribution of QR 4.7 billion, equivalent to a payout of QR0.78 per share.
