(The Group’s Comment) Industries Qatar Net Profits Decreased by 47% to QAR 2.03 billion in the 3rd Quarter 2019

 

Ø  Profit: The Company’s profit for the first 9 months of 2019 decreased by 46.8% representing nearly QAR 1789.4 million to reach QAR 2036.5 million versus QAR 3825.9 million for the same period last year 2018. Earnings per share amounted QAR 0.34 versus QAR 0.64 for the same period last year. The 3rd quarter profit amounted nearly QAR 576.9 versus QAR 1316.3 for the 3rd quarter 2018, a decline of 56.17%

 

Ø  Sales: total revenues amounted QAR 3717.5 million versus QAR 4557.0 million for the same period last year 2018, a decline of 18.42% representing nearly QAR 839.5, as a result of the decline in the prices of goods within the period. Value of petrochemicals sales declined by 26%. Likewise the sales volume declined by 6% and the iron and steel sector declined by 8% while the fertilizers sales declined by 1.0%.

 

Ø  Cost of sales: Notwithstanding the decline in revenues by 18.4%, however their cost reduced by 5.53% as a result of the existing fixed costs amounting QAR 3549.1 million compared to QAR 3757.1 million that notably impacted the profitability margins as the total profit for the period declined by QAR 631.5 million and recorded QAR 168.5 million compared to QAR 800.0 million for the same period of 2018. Accordingly, the cost of sales to sales ratio reached 95.47% compared to 82.44% for the same period 2018.

 

Ø  Company’s share from the results of investing in joint venture companies (QAPCO, QAFCO, QAFAC): The Company’s profits coming from this item has declined to reach in total QAR 1604.0 million versus QAR 2925.8 million for the same period 2018 a decline of QAR 1321.8 million, representing 45% which has negatively impacted the profits for the period.

 

 

Ø  Comprehensive Income: The Company recorded an assessment losses of QAR 2.11 million for the period compared to a profit of QAR 2.08 million for the same period last year 2018.