Q2 revenues surge 37.5% at Industries Qatar

12 Aug '14

3 min read

Industries Qatar, one of the region’s industrial giants with interests in the production of a wide range of petrochemical, fertiliser and steel products closed the second quarter ending June 30, 2014 with revenues of QR 1.8 billion, up 37.5% compared to first quarter ending March 31, 2014.

Industries Qatar reported revenue hike for the six months period ended June 30, 2014 at QR 3.1 billion, an increase of QR 0.05 billion, or 1.6%, over the same period of 2013.

Consolidated EBITDA for the six months ended June 30, 2014 was QR 2.9 billion, a decrease of QR 1.9 billion, or 37.2%, in the same period of 2013, and a QR 0.3 billion, or 20.9%, drop in the second quarter ending June 30, 2014, over the previous quarter.

Net profit for the first half of 2014 was QR 2.8 billion, a decrease of QR 1.7 billion or 37.2%, against the corresponding period of 2013.

Within the petrochemical segment, revenue for the second quarter of 2014 was QR 1.5 billion, registering an increase of 0.8% on the previous quarter.

Petrochemical sales for the first six months of 2014 were QR 2.9 billion against QR 3.3 billion from a year earlier, down QR 0.4 billion or 11.4%, primarily due to extensive, planned shut-downs across all plants within the segment.

The shutdowns resulted in the segment recording an adverse volume variance of QR 0.6 billion and a 204,000 MT reduction in sales volume. Quarterly utilisation rates were similarly affected, with the segment averaging 75% in comparison to its historical average of between 95% and 110%.

The heightened maintenance in the fuel additive segment was fully compensated by a moderate increase in polyethylene sales volume and selling prices. The segment closed the quarter with an overall utilisation rate of 75.5% against 82% in comparable quarter of 2013.

EBITDA margin in petrochemical segment in the first half year was at 50.8%, down 9.3% over the first half of 2013.

The reduction in the margin was primarily attributable on account of lower sales volumes due to the major shut-downs, the associated shut-down related maintenance expenditure, increased selling expenses and other operating expenses including ethylene purchases and losses relating to retirement of fixed assets.

“Petrochemical prices were buoyant with strong demand and global supply limitations particularly aiding polyethylene prices,” remarked Mr. Al-Shaibi, CMD of Industries Qatar.

He added, “LDPE registered a strong 11.3% year-on-year increase while LLDPE registered a moderate growth of 7.3%. Methanol registered a year-on-year growth of 27.7% to close at $ 421 per MT, on global supply constraints.

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