Industries Qatar posts a net profit of QR1bn in Q1

01/05/2025 07:52 AST

Industries Qatar, yesterday reported a net profit of QR1bn for the three-month period ended 31 March 2025, representing a moderate decline compared to 1Q-24.

Macroeconomic environment presented a mix bag of economic signal during the first quarter of 2025 after stabilizing mostly through 2024.

Global GDP growth remained positive to moderate while inflation also continue to remain somewhat moderate, and above target levels established by many Central Banks.

Despite uncertainties and geopolitical tensions continues to prevail economies across US, Eurozone, and the Emerging Markets grew on the backdrop of strong private consumptions and investments.

The concerns over renewed potential tariffs on imports to the USA added additional layer of uncertainty to the global macroeconomic environment.

From a regional point of view, continuing geo-political instability including the ongoing Red Sea conflicts, export restrictions on certain commodities like Urea, lower production in some of the larger production facilities have largely affected the supply-chain and consequently broadly offset the demand-supply effects.

Petrochemical segment experienced notable fluctuations during Q1-2025. Several factors impacted fluctuating petrochemical demand and supply, and thereby its prices.

A general decline in crude oil price that led to lower feedstock prices such as ethylene and naphtha, oversupply conditions notably in the Europe and Asian markets together with moderate to weaker demand resulting in a shift in supply-demand balance favoring buyers contributing to lower prices.

Fertilizer prices have shown a mix of stability and some fluctuations during the first quarter of 2025.

Nitrogen fertilizer prices continued to stabilize after the sharp increase in the prior years with prices peaking in 2022.

There were several factors supporting this price stability: Global demand and supply were relatively balanced amid some regional production cutbacks and export restrictions by some larger economies enabling stabilization of prices.

During 1Q-25, the Group's net earnings marginally grew compared to 4Q-24.

The increase was primarily due to an increase in in average selling prices were broadly offset by lower sales volumes, absence of one-off non-operating other income and lower income from group's steel associate.

Revenue for 1Q-25 has marginally increased versus 4Q-24 due to improved selling prices that was partially offset by a marginal reduction in the sales volumes.

Sales volumes have decreased sequentially amid presence of uncertainty in the market while a marginal increase in production volumes noted during the quarter.

The Group's financial position continue to remain robust, with cash and bank balances at QR9.2bn as of 31 March 2025, after accounting for a dividend payout relating to the financial year H2-2024 amounting to QR2.6bn and routine capital expenditure payments.

Currently, the Group has no long-term debt obligations.

The Group generated positive operating cash flows of ~QR670m, while invested ~QR640m in capital expenditure thereby generating a modest free cash flow.

Industries Qatar will host an Earnings call with investors to discuss the latest results, business outlook and other matters on Monday, 5 May 2025 at 1:30 pm Doha time.

The Peninsula