IQ net profit jumps 391% to QR3.5 bn in first half of 2021
Qatar Tribune
Tribune News Network Doha Industries Qatarâs (IQ) net profit for the first six months of 2021 has jumped 391 percent year-on-year to QR3.5 billion. The pro...
Tribune News NetworkDohaIndustries Qatarâs (IQ) net profit for the first six months of 2021 has jumped 391 percent year-on-year to QR3.5 billion. The profit in the same period last year was to QR0.72 billion.Its revenue improved by 69 percent to QR9.2 billion from QR5.4 billion for 1H-20 (assuming proportionate consolidation). Earnings per share (EPS) amounted to QR0.58 for 1H-21 versus QR0.12 for 1H-20. EBITDA increased by 188 percent and reached QR4.5 billion for 1H-21 in comparison to QR1.5 billion for H1-20. Compared to Q1-21, the group revenue improved by 17 percent, while the net profits improved by 42 percent. EBITDA for Q2-21 reached QR2.5 billion, up by 29 percent versus the previous quarter. The improved quarter-on-quarter results were primarily driven by continued cyclical macroeconomic tailwinds echoed from Q1-21, while supply remained pressured and pushed product prices higher, IQ said.âAlthough, petrochemical prices have started to soften specifically in the later part of Q2-21 following improved supply, but the overall price trend remained buoyant. Sales volumes have improved marginally due to improved production,â it added.The groupâs financial position continue to remain robust, with the liquidity position at the end of 30 June 2021 reaching QR11.1 billion in form of cash and bank balances, after accounting for a dividend payout for the financial year 2020 amounting to QR2 billion. Currently, the group has no long-term debt obligations. Groupâs total assets and total equity reached QR37.5 billion and QR35.3 billion, respectively, as at 30 June 2021. During the period, the group generated positive operating cash flows of QR3.7 billion, with free cash flows of QR3.4 billion. Industries Qatar will host an IR earnings call with investors to discuss the results, business outlook and other matters on Tuesday (August 10, 2021) at 1:30 pm Doha Time. The IR presentation that accompanies the conference call will be posted on the âfinancial informationâ page within the Investor Relations section at IQâs website. The economic momentum built upon effective ongoing vaccination campaign and ease of lockdowns in major markets allowed sequential recovery and led to a stronger consumer demand and rising oil prices. In addition, industry supply constraints and global logistical bottlenecks remained evident throughout the period across industrial sectors, especially for petrochemicals and fertilizers. These macro imbalances enabled positive trajectory of commodity prices and led to margin improvements. The groupâs operations continue to remain efficient with Groupâs share of production for the six-month period ended 30 June 2021 reaching 7.8 million MTs, marginally down by 6% versus 1H-20. This was primarily driven by Groupâs strategic decision to mothball part of its steel facilities since Aprilâ20, commercial shutdown at the MTBE facilities during Q1-21 and a planned shutdown during Q1-21 at certain fertilizer facilities. Plant utilization rates for 1H-21 reached 98%, while average reliability factor also stood at 99%.More Related News