Industries Qatar, the Gulf’s second-largest petrochemicals firm, posted a slight rise in second quarter profits on Wednesday, falling in line with analyst estimates.
The Qatari firm had net profit of QR2.14 billion for the quarter ended June 30, according to Reuters calculations based on financial statements. That compared with profit of QR2.08 billion a year earlier.
Analysts forecast average profit of QR2.09 billion, in a Reuters poll.
The company said it had first-half net profit of QR4.04 billion, down slightly from 4.17 billion in the same period last year.
Petrochemical prices have strengthened in recent months, but worries persist over the impact of a global slowdown on industry earnings in the world’s top oil exporting region.
In February, IQ inaugurated Qafco 5, a 1 million tonne urea facility while Qatar Petrochemical Co (QAPCO) – which is 80-per cent owned by Industries Qatar and 20 per cent held by France’s Total – began operating its polyethylene 3 plant during the second quarter.
“The marginal improvement in profitability was a result of the group posting stronger revenues, given the addition of Qafco-5 and QAPCO’s LDPE 3 during the quarter,” Egyptian brokerage Beltone Financial said in a research note.
“Segmentally, Qafco had the largest contribution to the group’s consolidated profits, given the addition of Qafco,” Beltone added.