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 QAR 0.58 versus QAR 0.54 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 reached QAR 12.7 billion, down 2% year-over-year due to lower selling prices, but 3Q-24 revenue rose 10% sequentially to QAR 4.4 billion.

• Net profit for 3Q 2024 was QAR 1.2 billion, up 13% sequentially from 2Q 2024.

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

• Free cash flow for the nine months was QAR 1.3 billion, with positive operating cash flows of QAR 3 billion.

• No long-term debt obligations; total assets and equity were QAR 40.9 billion and QAR 36.9 billion, respectively.

Outlook and guidance

• Management refrained from providing explicit forecasts but highlighted that fertilizer prices are influenced by seasonal demand, especially from India and the Northern Hemisphere.

• Planned maintenance in one fertilizer facility is expected in 4Q 2024, lasting about one month.

• No new capacity projects announced beyond Ammonia-7 and a small PVC project; organic growth depends on feedstock availability.

• CAPEX of QAR 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.