(The Group’s Comments) Industries Qatar’s Net Profit Falls to QAR 1.45 Billion for the First Half of 2019

 

August 01, 2019

 

Profit: Industries Qatar decreased by 41.5% to QAR 1,459.6 million for the first half of 2019, compared to QAR 2,509.584 million for the first half of 2018, while the company’s earnings per share amounted to QAR 0.24 versus to QAR 0.41 for the same period last year. As for the second quarter, the company posted a profit of about QAR 785.6 million, compared to QAR 1,241.7 million for the second quarter of 2018, a decrease of 36.7%.

 

Revenues: amounted to QAR 2,313 million for this year’s first half, compared to QAR 3,023 million for the first half of 2018, a decrease of 23.5% and QAR 710 million. This drop is due to the decrease in products prices during the period, as petrochemical sales decreased by 27.5%, and iron and steel by 23.5%, while fertilizer sales declined by 1.0%.

 

Sales Cost: Although revenues declined by 23.5%, their costs decreased by 8.8% to QAR 2,188 million compared to QAR 2,399 million, which had a significant impact on profit margins. The total profit for the period amounted to QAR 125 million, compared to QAR 624.5 million for the same period of 2018, the ratio of revenue to revenue was 94.5% compared to 79.4% for the corresponding period of last year.

 

The company's share of investments in joint ventures (QAPCO, QAFCO, QAFAC): The company's profits from this source decreased to QAR 1,105 million compared to QAR 1,852 million for the same period of 2018, down by QAR 747 million, which negatively impacted the profits of the period.

 

Comprehensive Income: Industries Qatar recorded an impairment loss of QAR 7.06 million for the first half of 2019, compared to a profit of QAR 2.21 million for the first half of 2018.

 

The implementation of Accounting Standard No. 16 on operating leases increased the financing costs from QAR 1.7 million to QAR 6.0 million and increased the extinguishing expenses by QAR 16.3 million.