Industries Qatar (IQCD) Q3 2024 earnings summary

Executive summary

• Consolidated net profit for the nine months ended 30 September 2024 reached QAR 3.58 billion, up 7% year-over-year, with EPS at QR0.58 versus QR0.54 last year.

• One of the region's largest industrial groups, operating in petrochemicals, fertilizers, and steel, with robust market positioning and strong financials as of 30 September 2024.

• Ranked #33 in Forbes' 2024 Top 100 Listed Companies in the Middle East, and #2 by market capitalization among regional peers.

• Maintains a stable credit rating (AA-/Aa3) and a diversified shareholder base, with QatarEnergy as the majority shareholder.

• Acquisition of QAFAC as a subsidiary effective June 2024, impacting consolidation.

Financial highlights

• Revenue for the nine months ended 30 September 2024 was QR 12.7 billion, down 2% year-over-year due to lower selling prices, though some sources report QR 9.31 billion.

• EBITDA for the period was QR5 billion, with a margin of 39%, compared to QR4.8 billion and 37% margin in the prior year.

• Free cash flow generation remains robust, with QR 11.3 billion net cash as of September 2024, despite dividend payouts.

• Cash and bank balances stood at QAR 11.3 billion as of 30 September 2024, after dividend payouts totaling QAR 6.6 billion.

• No long-term debt across the group as of 30 September 2024.

Outlook and guidance

• Fertilizer prices expected to be influenced by seasonal demand, particularly from India and the Northern Hemisphere; no formal forecast provided.

• Planned maintenance in one fertilizer facility expected in Q4 2024, lasting about one month.

• CAPEX of QR 10.8 billion planned for 2024-2028, with major investments in fertilizer (Qafco 7) and PVC projects.

• Blue Ammonia project (1.2 million mtpa) to start up in Q1 2026, fully funded by internal sources.

• The acquisition of QAFAC is expected to enhance future profitability and segment integration.