IQ Declares Net Profit Of QR 4.4 Billion for the Full Year 2015

Doha, February 04 (QNA) - Industries Qatar ("IQ" or "the group"; QE: IQCD), one of the regions industrial giants with interests in the production of a wide range of petrochemical, fertilizer and steel products, announced its financial results for the period ended 31 December, 2015 with net profit of QR 4.4 billion. The group reported sound financial and operating performance across all business segments during the current year on the backdrop of adverse economic and trading conditions as the groups sales volumes grew in excess of 9% on last year and recorded the highest sales volume since groups inception in 2003. Sales volumes were ably supported by the highest production in the groups history of 17 million MTs, following the return to normal operations of most of the groups productions facilities which were on extensive maintenance during the first half of 2014 despite two facilities within the steel segment were stopped from the beginning of the year after the ramping up of EF-5 furnace. In line with the above objectives, the Board of Directors, proposes a total annual dividend distribution for the year ended December 31, 2015 of QR 3.0 billion, equivalent to a payout of QR 5.0 per share and representing 50 % of the nominal value. The statement said net profit for the period under review was QR 4.4 billion, down QR 1.8 billion or 29.9% against the same period of 2014. This reduction in net profit was entirely driven by the reduced revenues resulting from price deflation across all segments despite the group vastly benefited from improved sales volumes and improved operating costs. He pointed out selling prices, across all segments were, however impacted significantly due to the prevailing unfavorable economic conditions driven by lower crude oil prices and weaker demand in many economies coupled with excess supply. Prices in the petrochemicals segments were heavily declined due to their close correlation with crude oil prices. Crude oil prices have now declined by more than 30% since the beginning of 2015 and more than 20% since end of Q3, 2015. Reported revenue under IFRS 11 for the period ended December 31, 2015 was QR 5.2 billion, a moderate decrease of 12.4%, over the same period of 2014. On the other hand, on a like-for-like basis, management reporting revenue - assuming proportionate consolidation under IAS 31 - was QR 16.0 billion, a decrease of QR 2.2 billion or 12.0%, versus the same period of 2014. This year-on-year reduction was primarily driven by a significant reduction product prices across all segments most notably in the prices of petrochemicals following the oil price decline that began in early Q4, 2014 which continued to remain low throughout 2015 and reached one of the lowest in December 2015. Prices of fertilizer and steel have also suffered a severe setback due to excess supply in some of the key producing countries due to lower energy and raw materials costs, and muted demand in some of the major buying countries Group reported the highest sales volumes since its inception, and were significantly up on last year (by ?10.0%) as the group benefited by a comparatively lower number of maintenance days in the current year since most of the groups production facilities completed their planned and warranty maintenance programs in 2014 resulting in a significantly higher maintenance days during 2014. Accordingly the current year production reached the highest in groups operating history and the production utilisation reached 104.6% (Year-to-date 2014: 98.4%) resulting in additional production and sales.(QNA)