Industries Qatar reports net profit of $576mln in January-June 2023

Industries Qatar reports net profit of $576mln in January-June 2023

Qatar - Market heavyweight Industries Qatar (IQ) – the holding entity of Qatar Petrochemicals, Qatar Fertilisers and Qatar Steel – has reported net profit of QR2.1bn in the first half (H1) of 2023.

However, net profit declined 62% on an annualised basis with the macroeconomic environment continuing to remain challenging during the first half of 2023 as geopolitical uncertainty persisted; along with recessionary fears linked to hawkish monetary policies resulted in subdued demand for most commodities.

The group’s operations continue to remain strong as production volumes for the current period improved by 3% year-on-year to 8,362mn metric tonnes. Earnings per share (EPS) stood at QR0.35 for H1-2023 compared to QR0.90 the year-ago period.

IQ’s financial position continue to remain robust, with cash and bank balances remaining at QR14.9bn as of June 30, 2023, after accounting for a dividend payout relating to the financial year 2022 amounting to QR6.7bn. Currently, the group has no long-term debt obligations.

The group’s reported total assets and total equity reached QR40bn and QR37.4bn, respectively, at the end of June 30, 2023. It generated positive operating cash flows of QR2.8bn, with free cash flows of QR1.7bn during H1-2023.

The petrochemicals segment reported a net profit of QR825mn, down 45% on a