IQ posts QR4bn net profit in 1st half of the year

Industries Qatar (IQ), a market heavyweight, has reported a 3% decline in its January-June net profit to QR4.04bn, triggered by petrochemical and steel businesses. Its petrochemical subsidiary (Qapco) witnessed a 14% erosion in segment profit to QR1.62bn and steel (Qatar Steel) by 8% to QR899.42mn; whereas fertiliser (Qafco) saw a 14% gain to QR1.47bn, according to its financial statement. Revenues, otherwise, gained 11% to QR9.07bn, chiefly on rising income from its fertilizer and steel units. Revenues from fertilizer and steel rose 28% and 17% to QR2.73bn and QR3.33bn, respectively (which were 30% and 36% of the total revenue); while that from petrochemicals was down 5% to QR3.02bn (33%). With cost of sales surging 22% to QR4.48bn, IQ could report only a 2% rise in gross profit to QR4.59bn. Other income fell 4% to QR173.66mn. General and administrative expenses shot up 35% to QR389.62mn, selling costs by 22% to QR129.22mn, finance costs by 54% to QR125.84mn and other costs by 37% to QR92.75mn. The company had also incurred a loss of QR18.19mn as share of results of associates against QR44mn gain in the year-ago period. Total assets were valued at QR36.15bn comprising current assets of QR11.53bn and non-current assets of QR24.62bn. Total equity stood at QR26.49bn on a capital base of QR5.5bn and earnings-per-share was QR7.34 at the end of June 30, 2012. from gulf times.