IQ reports QR3.4bn net profit on QR13.7bn revenues in 9M-2025

29/10/2025 04:22 AST

Market heavyweight Industries Qatar (IQ) - the holding entity for Qatar Petrochemicals, Qatar Fertiliser and Qatar Steel - has reported a net profit of QR3.4bn for the nine-month (9M) ended on September 30 2025.

On a like-for-like basis, excluding one-off impacts from 2024 related to the reversal of a financial guarantee provision and gains on a subsidiary acquisition recognised in 9M-2024, the consolidated net profit for 9M-2025 showed a 12% decline on annualised basis.

Group revenues for 9M-25 have shown moderate growth of 8% to QR13.7bn, driven by a combination of higher sales volumes (+2%) and improved selling prices (+6%).

The group's financial position continues to remain strong, with robust proportionately consolidated cash and bank balances of QR9.5bn, after accounting for a dividend payout of QR2.6bn for the second half of 2024 and 2025 interim dividend of QR1.6bn, capital expenditures related to on-going projects, turnarounds and routine PPE additions. Currently, the group has no long-term debt obligations.

The group's reported total assets and total group equity stood at QR41bn and QR37.1bn respectively at the end of September 30, 2025.

The petrochemicals reported a net profit of QR714mn for 9M-2025, reflecting a 39% plunge year-on-year, driven by lower revenue and a reduction in operating margin, influenced by higher operating costs. Revenues fell 9% to QR3.77bn due to lower sales volumes (-6%) and selling prices (-3%).

Selling prices eased due to macroeconomic headwinds, including weaker demand, oversupply from cautious buying behaviour, geopolitical tensions, and crude price volatility. Additionally, volumes were affected by unplanned shutdowns in polyethylene and fuel additives segments.

Operating margins came under significant pressure due to higher operating costs driven by both internal and external factors. Cost optimisation efforts are ongoing to manage costs whilst ensuring production and overall plant operations are efficiently and reliably managed.

The fertiliser segment's net profit was QR2.1bn for 9M-2025, a 38% improvement year-on-year, driven by a significant rise in average selling prices, with urea continuing to demonstrate price resilience, supported by growing food demand, expansion of arable land, improved farmer accessibility, tightened supplies from key export markets, and uncertainty around tenders in major consuming regions.

Revenue rose 13% to QR6.32bn, largely on higher average selling prices (+23%), while operating costs rose only slightly. The segment's ongoing focus on cost optimisation across all facets of operations resulted in a stronger improvement in operating profit and margins.

The steel segment reported a net profit of QR345mn, a decline of 21% on an annualised basis, impacted by the absence of a one-off other income recognised in 9M-2024 from the reversal of a provision for financial guarantee previously provided to an associate company.

Excluding the impact of this one-off other income in 9M-2024, net profit recorded in 9M-25 would have been 18% higher, reflecting the significant improvement in sales volumes mainly driven by higher production.

Segmental revenue increased 25% year-on-year to QR3.67bn, primarily driven by higher sales volumes (+45%) supported by increased production (+27%) and market expansion.

Selling prices, however, declined 14% year-on-year due to oversupply, softening domestic and international demand and changes to the sales mix.

Gulf Times