05/03/2018 06:12 AST
Industries Qatar (IQ) is working to expand its operations and production capacities aiming to maintain and improve the competitiveness of its products in the local, regional and global markets, Saad Sherida Al Kaabi, Chairman and Managing Director of the Board of IQ noted yesterday.
The group, which is one of the region’s industrial giants with interests in the production of a wide range of petrochemical, fertiliser and steel products, is currently evaluating a wide spectrum of potential investment and capital expenditure opportunities in the areas of capacity expansion, reliability, efficiency, and improvement in the field of health, environment and safety (HSE). “We believe such investments are essential to maintain our competitive position and add value to our shareholders,” Al Kaabi said in his addressing to the shareholders at the company’s Annual General Assembly held yesterday.
He added: “The group will evaluate each opportunity on its merits, and ensure the investment is in line with the group’s long-term strategic goals. We will keep our shareholders informed of any such capital investments as and when a decision is made.”
Meanwhile, the shareholders of IQ approved all the items on the agenda of the AGM. This includes the Board’s recommendation for annual dividend distribution (for 2017) of QR3bn, equivalent to QR5 per share.
The group reported a net profit of QR3.3bn and earnings per share of QR5.48 for the last financial year ended December 31, 2017. This compares with net profit of QR3bn and earnings per share of QR4.88 for the corresponding period of 2016. The group was also able to exceed the budget expectations for 2017.
Commenting on the operational and financial results of the group, Al Kaabi noted that 2017 was a year full of opportunities and challenges. Crude oil prices, which reached below $30 per barrel in early 2016, recovered and stabilised in 2017.
This presented increased opportunities and created renewed optimism for the petrochemical segment within the group, which help the group register growth in revenue and net profit.
“The integration of Qapco and QVC (Qatar Vinyl Company) was completed, and aims to improve the operational and financial performance of QVC, and bring additional benefits to the shareholders of both Qapco and QVC,” he said.
The group’s financial and operational performance for the year is considered credible amidst several challenges including the effect of the blockade, unplanned shutdowns in some of the facilities, a general increase in raw material costs (most specifically the cost of raw materials of steel), higher utility prices and muted demand in some geographies.
Despite of all these challenges, the group was able to maintain its production levels, and sales volumes, reduce the controllable operating expenditure, and marginally improve its selling prices. As a result, the group was able to outperform last year’s performance by 12 percent.
The revenue reported under IFRS 11 for the period ended December 31, 2017 was QR 4.6bn, remained almost flat over the same period of 2016. The slight increase in the prices almost offset a marginal decrease in the sales volumes.
The Peninsula
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