Industries Qatar H1 net profit up 28% to QR2.05bn

08 August 2007 19:45  [Source: ICIS news]

DUBAI (ICIS news)--Industries Qatar (IQ) posted a 28% rise in its first-half net profit to riyal (QR) 2.05bn ($563m/€409m) due to higher sales, increased income from investments and greater operational efficiency, the Qatari holding company said on Wednesday at a press conference.

IQ comprises the direct holding of shares in the following subsidiary and joint-venture companies: Qatar Steel Company (QASCO), Qatar Petrochemical Company (QAPCO), Qatar Fertiliser Company (QAFCO) and Qatar Fuel Additives Company (QAFAC).

The company said that the unprecedented net profit was attained despite a scheduled, routine 42-day shutdown of QAPCO and QAFAC during the reporting period. 

The company reported sales of QR4.2bn, up 14% from those reported during the same time last year. IQ attributed the higher sales to an increase in the volume of production, growing world demand, higher global energy prices and its positive impact on the prices of company products.

The company noted that management competency in controlling operational expenses was an important factor in the company’s profits. Increase in the cost of sales was 5% compared with a 14% increase in sales revenue, resulting in a 24% rise in the profit margin to QR2.1bn.

The company income from investments rose by 81% due to increase of dividends received from shares in its group of companies.

During the first half of the year, the return per share increased to QR4.09 from QR3.2 during the corresponding period last year.

Of the total net profits, QAFCO contributed the major share (43%) due to the rise in urea prices, followed by QAPCO (30%), QASCO (23%) and QAFAC (4%).

The company added that the volume of investments in its new projects and the expansion of existing ones was about QR14.7bn.

IQ was incorporated as a Qatari joint-stock company in 2003.

($1=QR 3.64, €1=QR 5.01)

By: Anuradha Rao
+65 6780 4359

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