Doha [Qatar], April 30: Industries Qatar (IQ) has reported a net profit of QR734 million for the three-month period ended March 31, 2026, marking a 26 percent decline compared to the same period last year, as ongoing regional tensions weighed on operations, logistics, and sales volumes.
The Group's earnings per share (EPS) stood at QR 0.12 for the first quarter of 2026, down from QR 0.16 recorded in Q1 2025.
Despite the challenging environment, IQ's revenue remained largely stable at QR 4.2 billion, supported by higher average selling prices that offset a decline in sales volumes. However, profitability was impacted by rising operating costs, with EBITDA falling to QR 1.3 billion from QR 1.5 billion a year earlier. Consequently, EBITDA margin declined to around 32 percent, compared to approximately 37 percent in Q1 2025.
The company attributed the softer financial performance primarily to lower production and sales volumes, as well as increased operating expenses. Production levels were affected by planned stoppages and reductions in certain product lines, along with unplanned shutdowns during the quarter, particularly in March.
"The ongoing regional conflict has had a significant impact on operations, including production, logistics, and distribution, leading to lower volumes and operational disruptions," the company said in a statement.
At the same time, higher global prices for fertilizers and steel provided some support to earnings. Improved blended product prices were driven by strong global demand and supply-side constraints, as well as increased energy and commodity prices amid geopolitical uncertainty.
Operating costs rose during the quarter due to unfavorable inventory movements, higher depreciation, and increased fixed overheads, although these were partially offset by lower variable costs linked to reduced production volumes.
On a quarter-on-quarter basis, earnings declined compared to Q4 2025, largely due to lower sales volumes and the absence of a one-off gain of QR 222 million recorded in the previous quarter related to the reversal of impairment in the steel segment. Adjusted for this one-off item, net profit showed a modest increase of around 4 percent, supported by stronger selling prices.
The fertiliser segment remained the largest contributor to earnings, posting a net profit of QR 495 million, albeit lower than the same period last year. The decline was mainly due to higher operating costs, despite improved revenues driven by stronger selling prices supported by global demand and supply constraints.
The steel segment delivered a strong performance, with net profit rising significantly to QR 196 million. The growth was driven by higher selling prices and increased sales volumes, supported by improved production following the restart of previously mothballed facilities and recovering demand in key markets.
Meanwhile, the petrochemicals segment reported a sharp decline in profitability, recording a net profit of just QR 4 million. The drop was attributed to lower sales volumes, reduced production, logistical disruptions, and weaker margins.
Despite the earnings decline, IQ maintained a robust financial position. The Group's cash and bank balances stood at QR 8.5 billion as of March 31, 2026, even after distributing QR 2.7 billion in dividends for the second half of 2025 and incurring capital expenditure of approximately QR 0.4 billion.
The company reported positive operating cash flows of around QR 1.1 billion and generated free cash flow of approximately QR 0.7 billion. Notably, the Group remains debt-free with no long-term borrowings.
Looking ahead, Industries Qatar indicated that it remains focused on operational excellence, maintaining high standards in health, safety, and environment (HSE), while navigating ongoing geopolitical uncertainties impacting global supply chains and market dynamics.
Source: Qatar Tribune
