Posted on March 24, 2011

Addressing IQ shareholders at their Annual General Assembly at the Sheraton last night, Industries Qatar chairman, HE Dr Mohamed bin Saleh al-Sada, also the Minister of Energy and Industry, said the company’s five year business plan up to 2015 envisaged total assets of QR64bn and net profits of QR7.7bn.

“From a nascent listed entity to an economic powerhouse, it took only eight years for us. IQ is a gift to the people of Qatar from HH the Emir. The group companies are all solid, professionally run and profit making. We have proved our resilience during the recent global economic crisis, and we are highly optimistic of weathering all turbulence in the global economic system in future,” al-Sada told Gulf Times on the sidelines of the meeting.

Industries Qatar chief co-ordinator Abdulrahman Ahmad al-Shaibi said the group companies -- Qafco, Qapco and Qatar Steel in particular, are undergoing major expansion. Many of their new projects will come online before 2013. In the last quarter of this year, Qatar Fertiliser Company will launch Qafco 5, which will be IQ’s largest project so far. Next year, Qafco 6 and Qapco’s Low-Density Polyethylene (LDPE-3) plants will commence operations.
In 2013, Qatar Steel will bring online its newest unit with a capacity of 1.1mn tonnes per year.

“With these projects coming online, IQ production capacity will more than triple in 2015 compared with 2003, the year of the company’s inception,” al-Shaibi said. Al-Sada highlighted that IQ was able to secure credit at ‘highly competitive rates’ when many companies around the world’ floundered’ and became ‘uncreditworthy’.
“We now have to actively consider what additional cost-effective sources of finance such as tapping the major international capital markets can be utilised to fund future growth. It is worth noting that seeking a debut credit rating from internationally recognised credit rating agencies is a necessary first step in enabling IQ to tap alternative sources of finance for future growth opportunities and increase the range and depth of financing options available,” al-Sada said.

He said 2010 was a very successful year for Industries Qatar. For only the second time in its eight-year history, group revenues exceeded QR12bn. IQ’s net profits in 2010 totalled QR5.6bn, up 12.4% on 2009.
“We successfully launched the Ras Laffan Olefins Cracker and Qatar Melamine Company and also made significant progress on the construction of Qafco 5 and Qafco 6 plants and the LDPE-3 (Qapco) facility.”
Revenue from IQ’s petrochemical business totalled QR4.7bn in 2010, aided by the addition of Qatofin’s linear low-density polyethylene (LLDPE) products from the second quarter and a weighted average of 37.9% price increase on last year.

Full year revenue from steel also totalled QR4.7bn with a robust 31.7% weighted average year-on-year price increase across all products. Revenue was also boosted by the ‘heightened regional demand and the successful penetration’ of  a number of new markets. In fertilisers, IQ earned a revenue of QR2.9bn last year, which was driven mainly by the increasing ammonia and urea prices in Q4, 2010.

Industries Qatar recently said it is largely unaffected by the unrest in the Mena region and the recent earthquake in Japan.  IQ is one of the region’s industrial giants with interests in production, distribution and sale of a wide range of petrochemical, fertiliser and steel products, and in the provision of facilities management services.

source: Gulf  Times