Posted on February 14, 2012

Industries Qatar (IQ), one of the Gulf region’s industrial giants, on Monday announced that its net profit for 2011 rose 44.8 percent to QR7.9 billion. The company’s fourth quarter profit of QR 1.7 billion, however, was down 18.7 percent compared with the preceding quarter.

The board of directors has recommend annual dividend distribution of QR 4.1 billion for 2011, equivalent to a payout of QR 7.50 per share and representing 75 percent of the nominal value.

The company’s full year Ebitda was QR8.8 billion, an increase of QR2.5 billion (39.7 percent), compared with the same period last year. The fourth quarter Ebitda was QR1.9 billion, a decrease of 18.3 percent, compared with the third quarter.

Minister of Energy and Industry HE Dr Mohammad bin Saleh al Sada, who is also the chairman and managing director of Industries Qatar, said, “The last financial year will be remembered as the year IQ surpassed previous financial records and achieved revenue of QR16.5 billion and net profits of QR7.9 billion.” “The group registered very strong operating rates over the year throughout our production facilities and, along with strong demand from key Asian markets, was able to therefore fully benefit from resurgent product prices,” he said.

The year-on-year result was also aided by the addition of LLDPE and melamine volumes following the plants’ commercial start-ups in the second quarter of 2010 and the first quarter of 2011 respectively, and improved petrochemical volumes following the planned and unplanned disruption experienced in the early part of 2010.

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Fourth quarter revenue dipped compared with the previous quarter on reduced steel revenue, while prices and volumes in the petrochemical and fertiliser segments were broadly flat.

Utilisation rates across the group continued their gradual downward progression from the postrecession record in the second quarter, to close the fourth quarter down 7 percentage points at 101 percent.

Petrochemical revenue for the year was QR6.5 billion, compared with QR4.7 billion in 2010. The positive year-on-year variance of QR1.8 billion (38.6 percent) was primarily due to low production volumes recorded last year due to extended methanol and MTBE plant shut-downs.

Quarter-on-quarter, petrochemical revenue marginally improved by QR5.8 million, or 0.3 percent, as drops in all key product prices were completely offset by ethylene, LDPE and LLDPE volume increases.

Total assets as of December 31, 2011 were QR36.8 billion, an increase on last year of QR 4.9 billion, or 15.3 percent, with the group’s commitment to sustained and significant capital expenditure resulting in noncurrent assets accounting for QR2.5 billion of the increase.

Total capital expenditure for 2011 was QR2.9 billion, a reduction of QR1.3 billion from 2010, under-scoring the tailoring-off of the group’s current investment programme.

source: Qatar Tribune