Doha, Qatar: Industries Qatar (“IQ” or “the Group”), yesterday announced a net profit of QR734m for the three-month period ended March 31, 2026 representing a decrease of 26% compared to the same period of last year.
In line with our previous announcement, the Group stopped and reduced production of certain products. Accordingly, the overall production for the period is down compared to the previous quarter and the same period last year. Production utilization and average reliability factors have also decreased due to the higher unplanned shutdowns arising from the announced stoppage and reduction of production notably in March.
The Group continued to ensure its commitment to operational excellence and reliable operations while ensuring unwavering focus on HSE continued while managing plant operations during this period.
The Group reported a consolidated net profit of QR0.7bn for the three-month period ending 31 March 2026, a decline versus 1Q-25 mainly due to lower sales volumes and higher operating costs partially offset by higher average selling prices. The Group’s revenue for 1Q-26 remained largely consistent with 1Q-25, as the lower sales volumes were largely offset by higher average selling prices.
The Group’s financial performance for the three-month period ended 31 March 2026was largely attributed to the following factors:
Blended average product prices improved against the same period last year and contributed positively toward the Group’s net income. This improvement was primarily driven by bullish global fertilizer and steel markets whilst the ongoing regional conflict led to uncertainty and drove energy and commodity prices up.
Sales volumes for the current period decreased marginally versus same period of last year, largely driven by lower production and shipping constraints amid ongoing regional uncertainties.
Operating costs for the period have increased, primarily driven by unfavorable inventory changes (mainly in the fertilizer and steel segments), increased depreciation and higher fixed overheads, partially offset by lower volume driven variable costs (primarily feedstock / raw materials).
The Group’s financial position continues to remain strong, with cash and bank balances at QR8.5bn as at31 March 2026, after accounting for a dividend payout relating to
the financial year H2-2025 amounting to QR2.7bn and routine capital expenditure payments of ~QR0.4bn. Currently, the Group has no long-term debt obligations. The Group generated positive operating cash flows of ~QR1.1bn,while invested ~QR0.4bn in capital expenditure thereby generating modest free cash flow of ~QR0.7bn.
