Industries Qatar Q4 Net Profit Slips 4.2%

Petrochemicals and metals company Industries Qatar (IQ) posted a 4.2 per cent decline in fourth-quarter net profit on Thursday, just below analysts’ forecasts, as the plunge in global oil prices dragged down petrochemical product prices.

The Middle East’s second-biggest petrochemicals company by market value, behind Saudi Basic Industries (SABIC), made a net profit of QAR1.60 billion($440 million) for the three months to Dec. 31, compared with QAR1.67 billion a year earlier, according to Reuters calculations based on an IQ statement in the Qatar Tribune newspaper.

Analysts polled by Reuters had on average expected the company to post a quarterly profit of QAR1.62 billion.

No reason was given for the drop in fourth-quarter profit but the newspaper said “the group faced challenges from extended shutdowns across all plants during the first half of the year, continued weak urea prices, and heightened operating costs”.

Last month, SABIC reported a 29 per cent plunge in fourth-quarter net income because of the oil price tumble.

However, IQ said last month that it was considering whether to expand production to take advantage of excess feedstock left by the cancellation of a project that was to be developed by Qatar Petroleum and Royal Dutch Shell.

The company reported annual net profit of QAR6.3 billion for 2014, down 21 per cent from QAR8.01 billion a year earlier.

IQ proposed on Jan. 8 a cash dividend of QAR7 per share for 2014.