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INVESTOR RELATIONS: Quarterly Financial Update For the period ended 30 September 2010

INVESTOR RELATIONS: Quarterly Financial Update For the period ended 30 September 2010. Release Date: 26 th October, 2010. Disclaimer & General Notes. Industries Qatar QSC:

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INVESTOR RELATIONS: Quarterly Financial Update For the period ended 30 September 2010

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  1. INVESTOR RELATIONS: Quarterly Financial Update For the period ended 30 September 2010 Release Date: 26th October, 2010

  2. Disclaimer & General Notes • Industries Qatar QSC: • The companies in which Industries Qatar QSC directly and indirectly owns investments are separate entities. In this presentation, “IQ” and “the group” are sometimes used for convenience in reference to Industries Qatar QSC. • Disclaimer: • This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Industries Qatar QSC. All statements other than statements of historical fact are deemed to be forward-looking statements, being statements of future expectations that are based on current expectations and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, operations and business performance or events impacting the group to differ materially from those expressed or as may be inferred from these statements. • There are a number of factors that could affect the realisation of these forward-looking statements such as: (a) price fluctuations in crude oil and natural gas, (b) changes in demand or market conditions for the group’s products, (c) loss of market share and industry competition, (d) environmental risks and natural disasters, (e) changes in legislative, fiscal and regulatory conditions, (f) changes in economic and financial market conditions and (g) political risks. As such, results could differ substantially from those stated, or as may be inferred from the forward-looking statements contained herein. All forward-looking statements contained in this presentation are made as of the date of this presentation, as marked on the Cover page. • Industries Qatar QSC, its Directors, officers, advisors, contractors and agents shall not be liable in any way for any costs, losses or other detrimental effects resulting or arising from the use of or reliance by any party on any forward-looking statement and / or other material contained herein. Industries Qatar QSC, its subsidiary, joint ventures and associated companies are further in no way obliged to update or publish revisions to any forward-looking statement or any other material contained herein which may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reason whatsoever. Industries Qatar QSC does not guarantee the accuracy of the historical statements contained herein. • General Notes: • IQ’s accounting year follows the calendar year. No adjustment has been made for leap years. • Where applicable, all values refer to IQ’s share. • Values expressed in QR billions and percentages have been rounded to 1 decimal point. All other values have been rounded to the nearest whole number. • Values expressed in US $’s have been translated at the rate of US $1 = QR3.64. INDUSTRIES QATAR|Quarterly Financial Update |2

  3. Key Highlights • Earnings up 6% on last year • Revenue of QR8.5bn: +20% v Q3, 2009; Net profit of QR4.1bn: +52.6% v adjusted profits (QR2.6bn, ex ‘price difference’ claim of QR1.2bn booked in 2009) • Full year profit target achieved • Revenue in line; Net profit: 100% of full year target (QR4.1bn) achieved by Q3, 2010 • Largest QoQ revenue growth since Q3, 2009 • QoQ revenue growth of 8.7% aided by improved petrochemical and fertiliser volumes (higher utilisation of MTBE and LLDPE plants) • YTD volumes affected by planned / unplanned shut downs, utilisation good at 98% • No major disruptions noted in Q3, 2010, but all segments experienced shut downs in H1, 2010 [Methanol (52 days) and MTBE (87 days)] • Strong YoY gross margin driven by steel segment • Gross margin of 48.7% (+9.8% v Q3, 2009), driven by steel segment (+17.5% v Q3, 2009) • RLOC / Qatofin launched, mega-projects on track • RLOC / Qatofin: Commercial production started in Q2, 2010; LDPE-3, QAFCO 5 and QAFCO 6 on track; Qatar Melamine launched in Q4, 2010 • Significant PPE / PUD investment YTD • Incremental spend of QR2.9bn primarily attributable to LDPE-3, QAFCO 5 and QAFCO 6 INDUSTRIES QATAR|Quarterly Financial Update |3

  4. Revenue, Net Profit By Quarter • Earnings up 53% on last year adjusted profits • Net profit of QR4.1bn: +6.0% v unadjusted profits (QR3.8bn), +52.6% v adjusted profits (QR2.6bn, ex ‘price difference’ claim of QR1.2bn booked in 2009) • Revenue up QoQ by 8.7%, driven by improved petrochemical and fertiliser volumes • No major disruptions in Q3, 2010, LLDPE moving into commercial production and increased Ammonia sales • Net profit flat QoQ, primarily due to decreased steel margin and reduced profits from associates • QoQ Revenue: +8.7%, QoQ Gross Profit: +3.1%, QoQ Net Profit: +0.5% INDUSTRIES QATAR|Quarterly Financial Update |4

  5. Q3 Performance v Budget • Group full year net profit target of QR4.1bn almost achieved • Revenue (QR10.9bn) and gross profit (QR4.9bn) appear achievable • 2010 budgeted price expectations appear reasonable • YoY price inflation on 2009 averages: Petrochemicals ≈5%, urea ≈2%, steel +7% • All segments on target to achieve their key budget lines INDUSTRIES QATAR|Quarterly Financial Update |5

  6. Key Product Prices By Quarter Sustained petrochemical product prices recovery Prices stabilised Marginal deterioration INDUSTRIES QATAR|Quarterly Financial Update |6

  7. YoY Price / Volume Variance Bridge • Revenue improvement principally due to product prices • Petrochemicals: +QR1.0bn; Fertiliser: +QR0.2bn; Steel: +QR0.6bn • Planned / unplanned shut downs and low plant utilisation affected group volumes, but aided by new facilities • Petrochemicals: -QR0.2bn; Fertiliser: +QR0.1bn; Steel: -QR0.3bn INDUSTRIES QATAR|Quarterly Financial Update |7

  8. Utilisation Rates By Plant / Product • Group utilisation running at 98% • Methanol, MTBE affected by shut downs in H1, 2010 • Unplanned shut down (MTBE: 37 days) to enable mechanical repairs, and not due to demand-related concerns or feedstock supply issues. Planned shut downs (Methanol: 52 days; MTBE: 50 days) for routine maintenance • All segments had planned shut downs in H1, 2010 • No major shut downs planned for H2, 2010 INDUSTRIES QATAR|Quarterly Financial Update |8

  9. Gross Margin By Segment • Petrochemical margin improved QoQ due to marginal price improvement • QoQ fertiliser margin sustained due to price stability • Steel margin reverted to historical mean • Q1 and Q2, 2010 margins impacted by raw material accruals and product pricing volatility INDUSTRIES QATAR|Quarterly Financial Update |9

  10. Current Projects Spend To Date • Projects on budget • LDPE-3 (Q4, 2011), QAFCO 5 (Q1, 2011) and QAFCO 6 (Q1, 2012) on schedule • RLOC / Qatofin commercial production started in Q2, 2010 • Qatofin operating at 69% utilisation, first full quarter of sales in Q3, 2010 • Qatar Melamine launched in Q4, 2010 • QS Upgrade Project announced in Q1 • Works due to start in H2, 2010 INDUSTRIES QATAR|Quarterly Financial Update |10

  11. Summary Profit & Loss • YoY revenue growth due primarily to improved selling prices • Price variance of +QR1.8bn and volume variance of -QR0.4bn • Petrochemical segment reported sustained YoY price growth, but affected by shut downs • MTBE and Methanol plants affected by planned and unplanned shut downs • Reduced Other Income due to booking of ‘Price Difference’ claim in 2009 INDUSTRIES QATAR|Quarterly Financial Update |11

  12. Summary Balance Sheet • Increase in PP&E due to RLOC addition • Increase in PUD on account of further spending on QAFCO 5 & 6 and LDPE-3 projects • Group’s borrowing increased on account of draw-downs on QAFCO 5 syndicate loan and QAPCO Murahaba facility INDUSTRIES QATAR|Quarterly Financial Update |12

  13. Summary Cash Flow Statement • Operating cash flows impacted by working capital changes • Adverse working capital movement of QR1.1bn • Negative working capital due primarily to inventory & AR increase • Inventory: +QR0.6bn, AR: +QR0.2bn • Net movement in loans due to further draw-downs on syndicate loans INDUSTRIES QATAR|Quarterly Financial Update |13

  14. About Industries Qatar QSC Industries Qatar QSC: Industries Qatar QSC (“IQ”) was incorporated as a Qatari joint stock company on April 19, 2003. The business operations of the company comprise the direct holding of shares in the following subsidiary and joint venture companies: (i) Qatar Steel Company QSC (“QS”), a wholly-owned subsidiary, engaged in the manufacture and sale of steel billets and reinforcing bars; (ii) Qatar Petrochemical Company Limited QSC (“QAPCO”), a joint venture owned 80% by IQ, engaged in the production and sale of ethylene, low-density polyethylene (“LDPE”), linear low-density polyethylene (“LLDPE”) and sulphur; (iii) Qatar Fertiliser Company SAQ (“QAFCO”), a joint venture owned 75% by IQ, engaged in the manufacture and sale of ammonia and urea; (iv) Qatar Fuel Additives Company Limited QSC (“QAFAC”), a joint venture owned 50% by IQ, is engaged in the production and export of methanol and methyl-tertiary-butyl-ether (“MTBE”); and (v) Fereej Real Estate Company, a joint venture owned 34% by IQ, engaged in investing in residential and commercial buildings, and the provision of facilities management and construction project management services. Qatar Petroleum, the largest shareholder, provides all of the head office functions for IQ through a comprehensive service directive. The operations of the subsidiaries and joint venture remain independently managed by their respective Boards of Directors and senior management teams. Fereej Real Estate Company Incorporated in 2008 as a joint venture, Fereej is currently owned by IQ (34%), Qatar Real Estate Investment Company (33%) and Al-Koot Insurance And Re-Insurance Company (33%). The company’s activities are focused on investing in residential and commercial buildings, and the provision of facilities management and construction management services. Qatar Fertiliser Company SAQ Qatar Fertiliser Company SAQ (“QAFCO”) is the world’s largest single site producer of urea and ammonia. It was incorporated in 1969 and is currently a joint venture between Industries Qatar QSC (“IQ”) [75%], Fertiliser Holdings AS (10%) and Yara Netherland BV (15%). QAFCO is engaged in the manufacture and sale of ammonia and urea, which are sold primarily in the Indian sub-continent, and urea formaldehyde condensate. INDUSTRIES QATAR|Quarterly Financial Update |14

  15. About Industries Qatar QSC Qatar Petrochemical Company Limited QSC Incorporated in 1974 as a joint venture, Qatar Petrochemical Company Limited QSC (“QAPCO”) is currently owned by Industries Qatar QSC (“IQ”) [80%] and TOTAL Petrochemicals (France) [20%]. QAPCO has two joint ventures, Qatofin Company Limited QSC and Ras Laffan Olefins Cracker Company, and two associated companies, Qatar Vinyl Company Limited QSC and Qatar Plastic Products Company WLL. QAPCO was established with the aim of utilising the associated and non-associated ethane gas from petroleum production. QAPCO is one of the leading producers of ethylene and variable grade low-density polyethylene (“LDPE”) [under the brand name “Lotrene”] in the Middle East, with sulphur being its by-product. The LDPE is marketed in over 75 countries, with the main markets being the Middle East, Far East, Africa and the Indian sub-continent. A substantial part of the ethylene produced is used in the LDPE production process, with the remainder being supplied to QAPCO’s associate, QVC, to meet its feed requirements. Qatar Fuel Additives Company Limited QSC Incorporated in 1991 as a joint venture, Qatar Fuel Additives Company Limited QSC (“QAFAC”) is currently owned by Industries Qatar QSC (“IQ”) [50%], OPIC Middle East Corporation [20%], International Octane Limited [15%] and LCY Middle East Corporation [15%]. The company was established as part of Qatar’s strategic plan to diversify its petrochemical base and expand its downstream industries. It is recognised as a producer and exporter of high quality methanol and methyl-tertiary-butyl-ether (“MTBE”). Its primary markets are the Far East, Europe and the Gulf region. Qatar Steel QSC Qatar Steel QSC (“QS”) was the first integrated steel producing company in the GCC region and is Qatar’s sole steel producer. Originally incorporated in 1974 as a joint venture between the State of Qatar, Kobe Steel and Tokyo Boeki, QS was subsequently wholly-acquired by Industries Qatar QSC (“IQ”) in 2003. QS is engaged in the manufacture and sale of steel bars, billets and reinforcing bars, which are sold primarily in the local and GCC markets. INDUSTRIES QATAR|Quarterly Financial Update |15

  16. For further information, Industries Qatar can be contacted as follows: • Email: iq@qp.com.qa • Telephone: (974) 4430-8681 • Fax: (974) 4429-3750 • Mail: PO Box 3212, Doha, State of Qatar • Please refer to www.iq.com.qa for the latest information, publications, press releases and presentations about Industries Qatar and the IQ group. INDUSTRIES QATAR|Quarterly Financial Update |16

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