Industries Qatar posts net profit of QR2 billion for first half
Industries Qatar (IQ) reported a net profit of QR2 billion for the first half of 2025, down from the same period last year. Revenue stood at QR8.7 billion, while EBITDA reached QR3 billion, yeilding earnings per share of QR0.32.
The board approved an interim dividend of QR1.6 billion (QR0.26 per share), to be paid on August 17, 2025.
The group's financial results reflect continued global challenges in the petrochemical and steel industries, alongside relatively stable performance in fertilizers.
The global economy remained under pressure in the first half of 2025 due to ongoing geopolitical tensions, high interest rates, and slow recovery from supply chain disruptions. Industrial activity and consumer demand stayed weak in major economies, affecting prices and profitability across several sectors.
The petrochemical industry struggled with weak demand, oversupply, and volatile feedstock prices.
Ethylene prices fluctuated, and many producers faced lower margins. In contrast, the fertilizer market remained relatively stable, supported by tighter global supply and stable energy prices.
The steel sector continued to face oversupply, especially from China, along with weak demand from construction and real estate. Seasonal slowdown in the Middle East also added pressure on prices and volumes.
Despite a difficult environment, IQ's operations stayed largely resilient. Some segments experienced planned and unplanned maintenance shutdowns.
Fertilizer production was affected by scheduled work, while polyethylene and steel segments had some unexpected halts.
The fuel additives segment returned to full operations after earlier disruptions.
Compared to the same period last year, overall production increased thanks to stronger output from the steel segment, offsetting lower fertilizer production. Petrochemical production stayed broadly the same. However, production dipped slightly in the second quarter due to shutdowns.
Excluding one-time gains recorded in the first half of 2024, the drop in profit this year was modest, driven by tighter margins. Revenues slightly improved year-on-year, helped by stable sales volumes and improved fertilizer prices. Average product prices for the group rose slightly to USD 472 per metric ton.
Operating costs increased due to inflation, higher maintenance costs, and increased production. Non-operating income was lower due to fewer one-off gains and a weaker interest rate environment.
In the second quarter of 2025, profit dipped slightly from the first quarter, reflecting lower prices and higher costs, though increased fertilizer and steel volumes helped cushion the impact.
The Group remains financially strong, with QR9.9 billion in cash and no long-term debt. Free cash flow reached QR0.6 billion after capital spending and dividend payouts.
Segment-wise performance
Petrochemicals: Net profit fell to QR488 million due to lower sales and prices.
Margins were affected by weaker demand, oversupply, and shutdowns in the polyethylene and fuel additives segments.
Fertilizers: Profit rose to QR1.1 billion, helped by stronger prices despite lower production. Demand remained strong, especially from large agricultural markets.
Steel: Profit dropped to QR265 million, mainly due to the absence of last year's one-time gains. Sales volumes increased, but prices fell due to weak global demand.
IQ will host an investor earnings call on August 13
to discuss the results and outlook.
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