Industries Qatar net profit almost halves in Q1

Petrochemicals, metals and fertilizer producer Industries Qatar’s (IQ) net profit almost halved in the first quarter, pressured by weak demand for its products and constraints on pricing, it said. 

The Middle East’s second-biggest petrochemicals company by market value reported net profit of 700 million Qatari riyals ($192.28 million) in the three months to March 31, down 46 percent from 1.3 billion riyals a year before.

“During the current reporting period, the group operated under tightened trading conditions, as demand for products remained somewhat low and product prices have softened,” the company said.

IQ’s results are closely tied to oil prices and global economic growth because its products are used extensively in construction, agriculture, industry and manufacturing.

It said prices for petrochemical products were down as a result of a drop in crude oil prices and muted demand, while sales volumes were pressured by periodic maintenance.

Steel prices also fell on account of lower demand and weaker prices in Asian markets, although sales volumes remained stable, the company said.

Fertilizer prices rose slightly, although volumes were down.

$1 = 3.6405 Qatar riyals Reporting by Nafisa Eltahir; Editing by Jan Harvey

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