Market heavyweight Industries Qatar, a holding company for petrochemicals, fertiliser and steel businesses has reported a 37% plunge in net profit to QAR 2.8 billion in the H1 of this year with earnings primarily impacted by shut downs and tightened fertiliser markets.
Mr HE Dr Mohamed bin Saleh al-Sada chairman of IQ and Energy Minister of Qartar said that “These preventive maintenance and warranty shut-downs are an essential requirement for large, industrial facilities as they can help minimise unplanned disruption, ensure product quality is maintained and, ultimately, contribute to an extension of the plants’ production life, improved reliability, and optimise environmental impact.”
Mr Abdulrahman Ahmad al Shaibi chief coordinator of IQ said that IQ looks forward to the balance of the year optimistically with production assets expected to operate more efficiently after the very successful preventive maintenance and warranty shutdowns. Consolidated net profit in the H1 year was in line with budgeted expectations as the moderate increase in urea prices noted during the H1 of the year was more or less offset by higher than expected unplanned maintenance days.”
Revenues of IQ, which is now included in the MSCI Qatar Index, grew about 2% YoY to QAR 3.1 billion. Petrochemical revenue showed YoY decrease of 11% to QAR 2.9 billion primarily driven by extensive, planned shut-downs across all plants within the segment.
Qatar Petrochemical Company’s ethylene plant lost an average 36 days per plant, linear density polyethylene (41 days) and the low density polyethylene LDPE (32 days). Moreover, Qatar Fuel Additives recorded a total of 64 days of downtime in its methanol facility and 46 days in methyl tert butyl ether.
Mr al Shaibi said that “Petrochemical prices, on the other hand, were buoyant with strong demand and global supply limitations particularly aiding polyethylene prices. LDPE registered a strong 11.3% YoY increase while linear LDPE registered a moderate growth of 7.3%. Methanol registered YoY growth of 27.7% to close at USD 421 per MT, on global supply constraints.”
He said that “The fertiliser segment closed the first half of 2014 with muted revenue of QAR 2.5 billion YoY fall of 28%, mainly due to both significant reduction in sales volumes and selling prices. Sales volumes fell YoY 16% as Qatar Fertiliser two largest production units, Trains 5 and 6, commenced mandatory, warranty related shutdowns in the period and a 14% reduction in the urea prices.”
Source – Gulf Times