A production facility of Qafco, one of the IQ companies

A production facility of Qafco, one of the IQ companies

IQ profits down by a third

01 November 2013

LOWER fertiliser prices and higher operating costs at Industries Qatar drove down third-quarter net profit at the petrochemicals and metals group by a third, missing analysts’ forecasts, report Reuters.

The Gulf’s second-largest chemical producer by market value after Saudi Arabia’s Saudi Basic Industries Co (Sabic), had net profit of QR1.73 billion ($475 million) for the three months to end-September, a Reuters calculation based on a nine-month financial statement showed.

This compared to QR2.62 billion for the third quarter of 2012.

Analysts polled by Reuters predicted an average of QR1.98 billion net profit in the third quarter. IQ cited a steep decline in fertiliser prices, in line with international trends, and higher operating costs caused by increases in natural gas rates under its supply and purchase agreement with state-owned group Qatar Petroleum.

“Petrochemical prices remain generally weak with most key product prices down on the same period of 2012,” the company said.

Revenue for the first nine months of the year was QR4.4 billion, a fall of 8.2 per cent compared to the same period a year earlier.

Companies within Industries Qatar are Qatar Petrochemical Company (Qapco), Qatar Fuel Additives Company (Qafac), Qatar Fertiliser Company  (Qafco)and Qatar Steel Company.

Qapco was incorporated in 1974 as a joint venture and is currently owned 80 per cent by IQ and 20 per cent by Total of France. Qapco has three joint ventures, Qatofin Company, Qatar Vinyl Company and Qatar Plastic Products Company.

Qafac was incorporated in 1991 as a joint venture company and is now owned 50 per cent by IQ, 20 per cent by Opic Middle East Corp, 15 per cent by International Octane Ltd and 15 per cent by LCY Middle East Corporation.

Qafco, incorporated in 1969 as a joint venture, is currently owned 75 per cent by IQ and 25 per cent by Yara Netherland BV. Qafco has two subsidiaries, namely Gulf Formaldeyde Company and Qatar Melamine Company.

Qatar Steel Company was incorporated in 1974 and is fully owned by IQ. It has several investments in the steel industry including Qatar Steel Company FZE, a fully owned subsidiary of Qatar Steel and three associates – Qatar Metal Coating Company, Solb Steel Company and Gulf United Steel Company (Foulath).

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