DOHA: Industries Qatar (IQ), yesterday reported a net profit of QR4.5bn for the year ended 31 December 2024, representing a decrease of 5% compared to last year.
Commenting on the Group’s financial and operational performance for the year ended on 31 December 2024, H E Saad Sherida Al Kaabi, Chairman of the Board of Directors and the Managing Director, said: “In the face of a dynamic and often unpredictable economic landscape, Industries Qatar has remained steadfast in its pursuit of excellence. Our dedication to sustainable value creation and strategic investments has allowed us to deliver commendable financial results and reinforce our commitment to maximize shareholder value.
I would like extend my sincere thanks to the Board of Directors, Chief Executive Officers, senior management, and all the employees of the group companies, without whom we would not have achieved these results.
Going forward, we will continue to strive for operational excellence by focusing on our human capital and environmental sustainability. Our commitment to responsible growth and long-term value creation for our shareholders will remain at the forefront of our strategic initiatives.”
In 2024, the petrochemical sector faced significant challenges from both demand and supply sides. Demand was impacted by economic slowdowns in major markets like China and the EU, heightened interest rates, and reduced consumer affordability. On the supply side, the market experienced oversupply, particularly in olefins and derivatives, due to capacity additions, especially from China. Producers in regions with low-cost ethane feedstock, such as North America and the Middle East, increased supply at lower costs compared to naphtha-based producers in Europe and parts of Asia. Regulatory pressures required sustainability investments, but high financing costs and uncertain demand delayed these efforts. Overall, the petrochemical markets showed mixed trends throughout the year.
The Group’s financial position continue to remain strong, with proportionately accounted cash and bank balances remaining robust, after accounting for a dividend payout relating to 2023 dividend and 2024 interim dividend. Currently, the Group has no long-term debt obligations.
Group’s reported total assets and total group equity as per the table above. The Group generated positive operating cash flows of QR4.6bn, with free cash flows of ~QR 1.3bn during the financial year 2024.
Given the liquidity required for current and future capital projects, along with the current short- and medium-term macroeconomic outlook, the Board of Directors proposes a 2H-2024 dividend distribution of QR2.6bn (equating to QR0.43 per share), bringing the total annual dividend distribution for the year ended 31 December 2024 of QR4.5bn, equivalent to a payout of QR0.74 per share for the full year, subject to necessary approval in the Annual General Assembly Meeting.
Industries Qatar will host an Earnings call with investors to discuss the latest results, on Thursday, 6th February 2025 at 1:30 pm Doha time. The IR presentation that accompanies the conference call will be posted on the ‘financial information’ page within the Investor Relations section at IQ’s website.
