H E Saad bin Sherida Al Kaabi (right), Minister of State for Energy Affairs and Chairman and Managing Director of Industries Qatar, with Abdulaziz Mohammed Al Mannai, Vice-Chairman, during the Annual General Assembly of Industries Qatar, in Doha yesterday
Industries Qatar (IQ), one of the largest and most profitable listed companies in the Middle East with interests in the production of a wide range of petrochemical, fertiliser, and steel products, has improved its overall supply chain and marketing activities in the past year, H E Saad Sherida Al Kaabi, Minister of State for Energy Affairs, Chairman of the Board of Directors and Managing Director at IQ said at the group’s annual general assembly yesterday.
Speaking during the event, the Minister noted that IQ continued to focus on ensuring safe, efficient, and reliable operations with consistent production levels, supported by significant efforts on output and cost optimisation. Partnering with the Qatar Chemical and Petrochemical Marketing and Distribution Company (Muntajat) enabled the group to access global markets, while reducing costs, he added.
The group has also been investing heavily in its health, safety, and environmental (HSE) programmes as it aspires to be an HSE role model in the region.
“We have a lot of investments in making sure that we have safe operations for our people and the environment. So that’s a continuous process. And Muntajat is an integral part of our organisation,” Minister Al Kaabi said while talking to The Peninsula on the sidelines of the event.
In its 2019 annual report which was presented during the event, the Board of Directors, citing IQ’s latest approved business plan through 2024, stated that the group’s total planned capital expenditure (CAPEX) stands at QR4.6bn.
IQ is evaluating a wide spectrum of potential CAPEX opportunities associated with capacity expansions and reliability, efficiency, and HSE improvements. The group believes such investments are essential to maintaining its competitive position and adding shareholder value.
IQ’s strategy is also focused on enhancing the level of existing HSE standards, while working as an organisation to become an HSE role model for the region that adheres to global standards in the pursuit of operational excellence.
During the meeting, the Board of Directors approved a total annual dividend distribution for the year ended December 31, 2019 amounting to QR2.4bn, which was equivalent to a payout of QR0.40 per share, representing a payout ratio of 94 percent.
IQ also reported a net profit of QR2.6bn in 2019, with a 49 percent decline compared to the previous year. The group’s business performance was largely impacted by external macroeconomic factors which translated into increased pressure on commodity prices for petrochemicals, fertilisers, and steel products, impacting the overall profitability of the group.
The group’s annual report also highlighted that IQ has made solid progress in 2019 in seeking to reduce controllable unit cost across the group by 10 percent over five years’ time, which was one of the group’s core strategic objectives.
