IQ reports QR2bn net profit in H1, approves 26% interim dividend

08/08/2025 03:12 AST

Market heavyweight Industries Qatar (IQ) - the holding entity of Qatar Petrochemicals, Qatar Fertiliser and Qatar Steel - has reported net profit of QR2bn in the first half (H1) of 2025.

The board has approved a total interim dividend of QR1.6bn, equivalent to QR0.26 per share, representing 26% of nominal share value for the period ended June 30, 2025.

Against H1-2024, production volumes increased, as lower production from the fertiliser segment was fully offset by higher production from the steel segment. Production levels in the petrochemicals remained broadly unchanged.

The consolidated net profit for H1-2025 saw a 27% yearly decline, reflecting lower operating margins, even as revenue improved slightly versus H1-2024.

The group's financial position continues to remain robust, with proportionate consolidated cash and bank balances at QR9.9bn as of June 30, 2025, after accounting for a dividend payout relating to H2-2024 amounting to QR2.6bn, capital expenditure investment, and working capital requirements.

Currently, IQ has no long-term financial debt obligations. It generated positive operating cash flows of QR1.8bn and invested QR1.2bn in capital expenditure and projects under development, thereby generating free cash flow of QR0.6bn.

Petrochemicals segment reported a net profit of QR488mn in H1-2025, down 32% year-on-year, linked to lower revenue and a decline in operating margin contributed to an increase in operating costs.

Revenue declined 6% to QR2.53bn on account of lower sales volumes and a marginal decline in selling prices. The fall in both sales volumes and prices was due to a combination of both internal and external factors.

The fertiliser segment reported a net profit of QR1.1bn in H1-2025, an 8% jump on an annualised basis, primarily driven by higher revenues, supported by improved average realised prices. Revenues were up 6% to QR3.87bn.

The steel segment saw a net profit of QR265mn in H1-2025, a 26% plunge year-on-year.

While gross and operating margins improved (about 1%), supported by improved cost efficiencies, net profit margin declined due to the absence of a one-off gain related to the reversal of a financial guarantee recorded in H1-2024 together with lower results from associates. On a like-for-like basis, profitability remained stable and in line with historical averages.

Segment revenue increased by 20% to QR2.3bn, driven by higher sales volumes resulting from the restart of previously mothballed production facilities.

Gulf Times