Minister of State for Energy Affairs and Chairman and Managing Director of Industries Qatar (IQ), H E Saad Sherida Al Kaabi, said yesterday that there are signs of recovery in global economy, which would yield positive results in terms of enhanced performance for Industries Qatar. Addressing shareholders during the Annual General Assembly yesterday, he said that this year’s high dividend payout ratio is a testament to the Group’s robust and resilient financial position.
“Given current short- and medium-term economic outlook and the related impact to our business, the Board of Directors proposes to pay a total annual dividend distribution for the year ended December 31, 2020 of QR2bn, equivalent to QR0.33 per share, with a pay-out ratio 100 percent to Group’s net earnings,” said Saad Sherida Al Kaabi speaking at the online AGM, held yesterday. “Given that this year’s pay-out ratio has been the highest since IQ’s incorporation, even with the extreme challenges faced by the Group during 2020, it is a testament to the Group’s robust and resilient financial position,” he added.
The AGM approved the Board’s recommendation for a dividend payment of QR0.33 per share for 2020, representing 33 percent of the nominal share value.
Saad Sherida Al Kaabi said that the year 2020 was marked by global economic uncertainties in form of stymied demand and weaker global GDP growth since the start of the year. The macro environment was further deteriorated due to unprecedented decline in the crude oil prices amid COVID-19 pandemic.
“All of this led to an increased pressure on our product prices, which negatively affected IQ’s overall financial performance for this year to record a net profit of approximately QR2bn,” he said. “Despite these challenges, we thrived to focus on our strategy, while critically relying on our people, portfolio growth and operational excellence, which resulted in maximising shareholder value,” he added.
He added that there have been some signs of gradual recovery noted in the global macroeconomic climate, specifically in the latter part of 2020, with a rebound in the prices of crude oil and downstream products, owing to unprecedented stimulus announcements and lifting of lockdowns in major markets, along with optimism around vaccine roll-out.
“Against such a backdrop of positive developments, we look forward to a further improved macroeconomic environment, which would yield positive results in terms of enhanced performance for the Group,” he added.
He added that during the year, the Group continued its focus on ensuring safe, efficient and reliable operations with consistent production levels, supported by momentous efforts focused on output and cost optimization. At the same time, IQ improved its overall supply chain and marketing activities, especially in the lockdown situations, as we maintained our sustained uninterrupted access to global markets.
Speaking at the event, Manager Privatized Companies Affairs Department, Qatar Petroleum, Mohammed Jaber Al Sulaiti, said “On overall basis, our base case strategy will continue to focus on market development, while focusing on capturing new markets, creating market arbitrages, and bringing logistical cost savings to the Group.”
“We will also continue to focus on efficiency gains via on-going cost optimization programs, as cost efficiency and operational excellence is now needed more than ever, where, IQ is already well-positioned given the cost efficiency programs it has undergone in the recent years starting from 2014, which has now formed part of the DNA of the Group. Moreover, going forward into the future, we will continue to look for opportunities in the future that fit best to our strategies and vision.”
