Tribune News Network
Doha
Industries Qatar (IQ) on Monday announced that it reported a net profit of QR2.7 billion for the first quarter of 2022, representing an increase of 87 percent compared to the first quarter in the previous year.
Macroeconomic environment remained uneven during the first three months of 2022, where demand for most of the downstream products slightly inched downward, as buyers remained cautious hoping for lower prices after reaching its peak last year. Also, seasonal effects weighed on most of the commodities’ demand, mainly during early parts of the year.
On the other hand, specifically during the latter part of the first quarter of 22022, supply side was affected amid Russia-Ukraine conflict enforcing sharp rise in energy prices; challenging plant economics. Specifically on fertilizers’ front, amid Russian sanctions has created considerable uncertainty for buyers to secure volumes.
On an overall basis, during the first two months of the year, commodity prices were essentially balanced to bearish; while starting from March’22 the prices started to demonstrate strength on account of higher energy prices, coupled with additional layers of supply side disruptions. However, the year-on-year price trajectories remain elevated on account of continued support from better economic activity, GDP growth and limited supply.
Group’s operations remained strong as production volumes for the quarter improved by 5 percent to reach 3.9 million MT’s in comparison to the first quarter of 2021, while 9 percent growth was noted in comparison to the fourth quarter of 2021. Growth in production volumes was mainly driven by multiple factors including the Group’s recent decision to restart one of the previously mothballed DR-2 facility with a larger capacity, while mothballing previously operational DR-1 facility with lower capacity.
This decision was made to improve the overall efficiencies on account of raw material mix and offer opportunities to sell excess capacities of DR directly in the market.
Additionally, the Group had a higher number of operating days during the first quarter of 2022 compared to first quarter of 2021 and the fourth quarter of 2021, as there were relatively lower numbers of planned and unplanned shutdowns reported during the current period. Plant utilisation rates for the quarter reached 95 percent, while average reliability factor stood at 97 percent.
The Group reported a net profit of QR 2.7 billion demonstrating a notable growth of 87 percent, against the same period of last year. Revenue for the first quarter of 2022 significantly improved by 69 percent to reach QR 7.1 billion as compared to QR4.2 billion reported for the first quarter of 2021. Earnings per share (EPS) for the first quarter of 2022 was QR0.45, against QR0.24 for the same period last year.
EBITDA for the first quarter of 2022 increased by 67 percent compared to the first quarter of 2021 and reached QR3.2 billion, while the EBITDA margin for the first quarter of 2022 arrived at 46 percent.
Group’s financial performance for the quarter in comparison to the same period of last year was largely attributed to multiple factors, including product prices. Blended product prices significantly surged by 55 percent against the first quarter of 2021 and reached $747/MT. Growth in product prices translated into an increase of QR2.8 billion in Group’s net earnings. The price increase was mainly linked to elevated market prices across all the segments, on account of constructive macroeconomic drivers.
Sales volumes for the quarter increased by 9 percent against the same period of last year, primarily driven by higher plant operating rates, leading to improved production volumes.
Group operating cost increased by 59 percent versus the same period last year. The increase in the operating cost was primarily linked to higher variable cost on account of increased sales volumes and end-product price indexed raw material cost.
During the first quarter of 2022, Group revenue and net profit improved against the fourth quarter of 2021, mainly linked to better sales volumes due to higher production, together with additional sales volumes from Qafco on account of timing of shipments carried forward from 4Q-21. Sales volumes increased by 25 percent on a quarter-on-quarter basis.
On the contrary, product prices declined during the first quarter of 2022 by 5 percent against the fourth quarter of 2021, amid volatile macro trends. EBITDA for first quarter of 2022 marginally increased by 2 percent to reach QR3.2 billion, while EBITDA margins declined due to higher operating cost.
Group’s financial position continues to remain robust, with cash and bank balances at QR12.6 billion as of 31 March 2022, after accounting for a dividend payout relating to the financial year 2021, amounting to QR6.0 billion. Currently, the Group has no long-term debt obligations.
Group’s reported total assets and total equity reached QR 38.8 billion and QR 36.2 billion, respectively, as of March 31, 2022. The Group generated positive operating cash flows 1 of QR2.8 billion, with free cash flows 1 of QR 2.6 billion during the first three months of 2022.
Doha
Industries Qatar (IQ) on Monday announced that it reported a net profit of QR2.7 billion for the first quarter of 2022, representing an increase of 87 percent compared to the first quarter in the previous year.
Macroeconomic environment remained uneven during the first three months of 2022, where demand for most of the downstream products slightly inched downward, as buyers remained cautious hoping for lower prices after reaching its peak last year. Also, seasonal effects weighed on most of the commodities’ demand, mainly during early parts of the year.
On the other hand, specifically during the latter part of the first quarter of 22022, supply side was affected amid Russia-Ukraine conflict enforcing sharp rise in energy prices; challenging plant economics. Specifically on fertilizers’ front, amid Russian sanctions has created considerable uncertainty for buyers to secure volumes.
On an overall basis, during the first two months of the year, commodity prices were essentially balanced to bearish; while starting from March’22 the prices started to demonstrate strength on account of higher energy prices, coupled with additional layers of supply side disruptions. However, the year-on-year price trajectories remain elevated on account of continued support from better economic activity, GDP growth and limited supply.
Group’s operations remained strong as production volumes for the quarter improved by 5 percent to reach 3.9 million MT’s in comparison to the first quarter of 2021, while 9 percent growth was noted in comparison to the fourth quarter of 2021. Growth in production volumes was mainly driven by multiple factors including the Group’s recent decision to restart one of the previously mothballed DR-2 facility with a larger capacity, while mothballing previously operational DR-1 facility with lower capacity.
This decision was made to improve the overall efficiencies on account of raw material mix and offer opportunities to sell excess capacities of DR directly in the market.
Additionally, the Group had a higher number of operating days during the first quarter of 2022 compared to first quarter of 2021 and the fourth quarter of 2021, as there were relatively lower numbers of planned and unplanned shutdowns reported during the current period. Plant utilisation rates for the quarter reached 95 percent, while average reliability factor stood at 97 percent.
The Group reported a net profit of QR 2.7 billion demonstrating a notable growth of 87 percent, against the same period of last year. Revenue for the first quarter of 2022 significantly improved by 69 percent to reach QR 7.1 billion as compared to QR4.2 billion reported for the first quarter of 2021. Earnings per share (EPS) for the first quarter of 2022 was QR0.45, against QR0.24 for the same period last year.
EBITDA for the first quarter of 2022 increased by 67 percent compared to the first quarter of 2021 and reached QR3.2 billion, while the EBITDA margin for the first quarter of 2022 arrived at 46 percent.
Group’s financial performance for the quarter in comparison to the same period of last year was largely attributed to multiple factors, including product prices. Blended product prices significantly surged by 55 percent against the first quarter of 2021 and reached $747/MT. Growth in product prices translated into an increase of QR2.8 billion in Group’s net earnings. The price increase was mainly linked to elevated market prices across all the segments, on account of constructive macroeconomic drivers.
Sales volumes for the quarter increased by 9 percent against the same period of last year, primarily driven by higher plant operating rates, leading to improved production volumes.
Group operating cost increased by 59 percent versus the same period last year. The increase in the operating cost was primarily linked to higher variable cost on account of increased sales volumes and end-product price indexed raw material cost.
During the first quarter of 2022, Group revenue and net profit improved against the fourth quarter of 2021, mainly linked to better sales volumes due to higher production, together with additional sales volumes from Qafco on account of timing of shipments carried forward from 4Q-21. Sales volumes increased by 25 percent on a quarter-on-quarter basis.
On the contrary, product prices declined during the first quarter of 2022 by 5 percent against the fourth quarter of 2021, amid volatile macro trends. EBITDA for first quarter of 2022 marginally increased by 2 percent to reach QR3.2 billion, while EBITDA margins declined due to higher operating cost.
Group’s financial position continues to remain robust, with cash and bank balances at QR12.6 billion as of 31 March 2022, after accounting for a dividend payout relating to the financial year 2021, amounting to QR6.0 billion. Currently, the Group has no long-term debt obligations.
Group’s reported total assets and total equity reached QR 38.8 billion and QR 36.2 billion, respectively, as of March 31, 2022. The Group generated positive operating cash flows 1 of QR2.8 billion, with free cash flows 1 of QR 2.6 billion during the first three months of 2022.