20 April 2012 04:55 [Source: ICIS news]
SINGAPORE (ICIS)--Industries Qatar reported late on Thursday that its net profit had fallen by 9.5% year on year to Qatari riyal (QR) 1.9bn ($522m) in the first quarter of 2012 because of lower sales from its petrochemicals unit and decreased margins at its fertilizer and steel businesses.
The company’s overall revenue rose by 8.9% year on year to QR4.36bn in the first quarter. The revenue was boosted by the start of commercial production at its new ammonia/urea complex, Qafco 5, and improved production levels at the group’s Mesaieed-based steel operations, the company said in a statement.
However, its overall earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 8.3% year on year to QR2.2bn in the first quarter, with margins at its fertilizers business weighed by increased feedstock costs, it said.
The firm’s petrochemical revenue fell by 8% year on year to QR1.3bn in January-March this year, partly weighed by the 28 days of unplanned shutdowns at a fuel additives joint venture early in the quarter as well as marginally lower product prices, the firm said.
The company’s fertilizer sales rose by 14.5% year on year to QR1.3bn, while revenues from its steel segment rose by 22.1% to QR1.7bn, it added.
“The group eagerly awaits the remainder of 2012 as we build on the successful launch of Qafco 5 and anticipate the imminent launch of LDPE-3,” said Abdulrahman Ahmad Al-Shaibi, the chief coordinator of Industries Qatar.
“By the end of the year, the group expects to launch plants with a total of 2m tonnes/year of urea capacity and 240,000 tonnes [per annum] of LDPE [low density polyethylene] capacity,” Al-Shaibi added.
($1 = QR3.64)
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