Industries Of Qatar Co. · QSE:IQCD
Industries Of Qatar — Industries Qatar — Q3 2024 Earnings Presentation
54 slides from Industries Of Qatar's earnings presentation, Sep 30, 2024
Slide 1: Industries Qatar Investor Relations Presentation
CLASSIFICATION: C0 - NON-CONFIDENTIAL Industries Qatar Investor Relations Presentation 30 Sept. 2024 “One of the region’s industrial giants with interests in the production of a wide range of petrochemical, fertilizer and steel products.” Publication Date: March […], 2015
Slide 2: Disclaimer
CLASSIFICATION: C0 - NON-CONFIDENTIAL DISCLAIMER The Companies in which Industries Qatar Q.P.S.C. 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 Q.P.S.C. This presentation
Slide 3: Table of Content
CLASSIFICATION: C0 - NON-CONFIDENTIAL Table of Content 1. About IQ 2. Competitive strengths 3. Regional peer review 4. Macroeconomic updates 5. Group results (For the period ended 30 Sept. 2024) 6. Segment results (For the period ended 30 Sept. 2024) 7. CAPEX (2024B – 2028F) 8. Dividends and market
Slide 4: About IQ
CLASSIFICATION: C0 - NON-CONFIDENTIAL About IQ 4 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 4
Slide 5: IQ at a Glance
CLASSIFICATION: C0 - NON-CONFIDENTIAL IQ at a Glance Overview • Industries Qatar (IQ) was incorporated and • QatarEnergy provides most head office listed on the Qatar Exchange in 2003. functions through a comprehensive service- • IQ is the second largest company at Qatar level agreement. Exchange by
Slide 6: IQ business segments at glance (9M-2024)
CLASSIFICATION: C0 - NON-CONFIDENTIAL IQ business segments at glance (9M-2024) Business segments overview Segment size by Revenue • Through its group companies, IQ operates in three distinct business segments: 23.2% Petrochemicals Petrochemical, Fertilizer and Steel; 32.8% Fertilizers • Production f
Slide 7: Competitive strengths
CLASSIFICATION: C0 - NON-CONFIDENTIAL Competitive strengths 7 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 7
Slide 8: Competitive strengths
CLASSIFICATION: C0 - NON-CONFIDENTIAL Competitive strengths • Assured feedstock supply Low-cost • Economies of scale and operationally diversified producer • Synergy benefits Strong • Solid liquidity position, with no long-term debt financial • Strong cash flow generation with stable EBITDA margins
Slide 9: Regional peer review
CLASSIFICATION: C0 - NON-CONFIDENTIAL Regional peer review IQ ranked #33 among “2024 Forbes List of Top 100 Listed Companies in the Middle East” 9 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 9
Slide 10: Competitive positioning versus regional peers
CLASSIFICATION: C0 - NON-CONFIDENTIAL Competitive positioning versus regional peers Market Cap. (USD’ billion) Total Assets (USD’ billion) Peer 1 59.9 Peer 1 76.0 IQ 21.7 IQ ranks #2 IQ 11.4 IQ ranks #2 Peer 2 15.0 Peer 2 8.8 Peer 3 11.6 Peer 3 6.9 Peer 4 5.9 Peer 4 6.7 Note: Data as of 30-Sept-24 N
Slide 11: Macroeconomic updates
CLASSIFICATION: C0 - NON-CONFIDENTIAL Macroeconomic updates 11 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 11
Slide 12: Macroeconomic updates
CLASSIFICATION: C0 - NON-CONFIDENTIAL Macroeconomic updates Petrochemicals LDPE ($/MT) • In the petrochemical sector, producers face hurdles due to 1650 LLDPE ($/MT) accumulation of capacity expansion, especially in China, and 1450 high energy costs in Europe. These factors have led to 1250 depresse
Slide 13: Group results
CLASSIFICATION: C0 - NON-CONFIDENTIAL Group results (For the period ended 30 September 2024) 13 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 13
Slide 14: Operational performance review
CLASSIFICATION: C0 - NON-CONFIDENTIAL Operational performance review Production (MT’ 000) Production (MT’000) • 9M-23 vs 9M-24: Production volumes marginally improved versus same period of last year, mainly due to improved fertilizer production. • 3Q-24 vs 2Q-24: Production increased versus previous
Slide 15: Financial performance review
CLASSIFICATION: C0 - NON-CONFIDENTIAL Financial performance review Revenue Revenue(QR’ million) (QR Billion) • 9M-23 vs 9M-24: Group revenue decreased marginally, mainly on account of decline in blended average selling prices. • 3Q-24 vs 2Q-24: Group revenue increased, mainly on account of incline i
Slide 16: Net profit variance analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Net profit variance analysis 9M-24 vs 9M-23 Profits and profitability inclined moderately on account of improved, sales volumes, operating costs, and one-off other income, partially offset by lower selling price. Amounts in QR ‘millions 2Q-24 vs 3Q-24 Profitabil
Slide 17: IQ cash flow generation
CLASSIFICATION: C0 - NON-CONFIDENTIAL IQ cash flow generation IQ’s free cash flow generation capability continue to remain robust Amounts in QR ‘millions IAS 31 IAS 31 Total Free Cash Flows Generated During the Period 17 17 Industries Qatar, IR Presentation, 3Q-24
Slide 18: Robust and Competitive EBITDA margins
CLASSIFICATION: C0 - NON-CONFIDENTIAL Robust and Competitive EBITDA margins Despite the volatile trends in commodity prices, IQ’s EBITDA margins continue to remain robust and competitive 140 60% 51% 52% 53% 120 Oil price (USD/bbl), Brent 50% IQ EBIDTA Margins (%) 45% 45%46% 42% 100 39% 40% 41% 41% 4
Slide 19: IQ's plant operating rates
CLASSIFICATION: C0 - NON-CONFIDENTIAL IQ’s plant operating rates IQ’s plant operating rates remained stable 118.0% 116.5% 116.0% 115.0% 114.8% 114.0% 113.3% 113.3% 113.0% 112.8% 112.3% 111.0% 110.8% 109.6% 109.1% 109.1% 107.0% 107.0% 106.4% 106.4% 105.7% 103.2% 102.9% 102.6% 102.0% 101.0% 100.9% 100
Slide 20: Geographic analysis – IQ Group revenue
CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographic analysis – IQ Group revenue Asia remained Group’s largest market Europe 8% Qatar North America Middle East 13% Asia, ex. ISC 18% 20% 31% Africa Indian sub-continent 2% 8% 20 Industries Qatar, IR Presentation, 3Q-24
Slide 21: Segment results
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segment results (For the period ended 30 Sept. 2024) 21 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 21
Slide 22: Segmental Details: Petrochemicals
CLASSIFICATION: C0 - NON-CONFIDENTIAL SegmentalDetails: Segmental Details Petrochemicals • The companies in the Petrochemical segment (Qapco, Qatofin, Qafac and QVC) are engaged in the production of: Product (in 000 MT PA) Capacity1 Ethylene 920 LDPE 600 LLDPE 280 Methanol 500 MTBE 305 Caustic Soda
Slide 23: Results: Petrochemicals – production & selling prices
CLASSIFICATION: C0 - NON-CONFIDENTIAL Analysis of production & Results: Petrochemicals selling prices ▪ Production: production volumes marginally up compared to same period of last year, against the backdrop of higher plant operating days. ▪ Production volumes increased versus previous quarter, main
Slide 24: Results: Petrochemicals – revenue & net profit
CLASSIFICATION: C0 - NON-CONFIDENTIAL Results: Petrochemicals Analysis of segment revenue & net profit ▪ Revenue: Up versus same period of last year. The incline was driven by improvement in sales volumes, and partially offsetted by reduction in average realized prices; ▪ Revenue for the current qua
Slide 25: Results: Petrochemicals – EBITDA margins
CLASSIFICATION: C0 - NON-CONFIDENTIAL Results: Petrochemicals Analysis of segment EBITDA margins Segment’s EBITDA margins continue to remain strong 1200 70% 58% 49% 1000 54% 60% 53% 47% 45% 45% 50% 800 44% 42% 42% 41% 40% 41% 39% 38% 39% 36% 40% 600 1017.3 983.4 27% 30% 829.5 828 23% 750 741 400 602
Slide 26: Results: Petrochemicals – geographical analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographical analysis of Results: Petrochemicals segment revenue ▪ Asia (including Qatar & Middle East) remains a main market for IQ for Polyethylene (LDPE and LLDPE) and MTBE 9M-24 Segment Revenue (%) 9M-23 Segment Revenue (%) 1% 1% 13% 13% 31% 35% 15% 17% 8% 8
Slide 27: Results: Petrochemicals – key segment products
CLASSIFICATION: C0 - NON-CONFIDENTIAL Results: Petrochemicals Key segment products analysis LDPE LLDPE 1,261 1,103 1,123 1,069 948 1,017 1,038 1,081 1,144 1,069 949 1,005 1,012 920 950 964 970 943 162 163 159 166 155 144 146 159 153 73 81 63 76 73 66 84 47 73 3Q-22 4Q-22 1Q-23 Q2-23 Q3-23 Q4-23 1Q-2
Slide 28: Segmental Details: Fertilizers
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Fertilizers • Qatar Fertiliser Company has six ammonia and six urea production trains all of which are located in Qatar. Product (in 000 MT PA) Capacity1 Ammonia 3,840 Urea 5,957 Melamine 60 Total 9,922 • The segment’s primary feedstock is met
Slide 29: Results: Fertilizers – production & selling prices
CLASSIFICATION: C0 - NON-CONFIDENTIAL Analysis of production & Results: Fertilizers selling prices ▪ Production: Production volumes marginally up compared to same period last year, mainly on account of improved facility availability. ▪ Production marginally declined compared to previous quarter on a
Slide 30: Results: Fertilizers – revenue & net profit
CLASSIFICATION: C0 - NON-CONFIDENTIAL Analysis of segment Results: Fertilizers revenue & net profit ▪ Revenue: Decreased compared to the same period of last year, due to lower selling prices which was partially offset by improved sales volumes. ▪ Improved versus the previous quarter owing to higher
Slide 31: Results: Fertilizers – EBITDA margins
CLASSIFICATION: C0 - NON-CONFIDENTIAL Results: Fertilizers Analysis of segment EBITDA margins Segment’s EBITDA margins continue to remain resilient 3000 80% 68% 70% 2500 53% 53% 57% 60% 50% 50% 2000 47% 49% 46% 48% 46% 49% 44% 43% 44% 50% 35% 35% 37% 1500 40% 2,546 31% 2,004 30% 1,821 1000 1,538 1,4
Slide 32: Results: Fertilizers – geographical analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographical analysis of Results: Fertilizers segment revenue ▪ Asia is a key market for fertilizers along with North America followed by Europe. 9M-24 Segment Revenue (%) 9M-23 Segment Revenue (%) 0% 4% 31% 24% 40% 40% 4% 5% 2% 1% 15% 14% 9% 11% Asia, ex. ISC A
Slide 33: Results: Fertilizers – key segment products
CLASSIFICATION: C0 - NON-CONFIDENTIAL Results: Fertilizers Key segment products analysis Urea 1,405 1,433 1,542 1,365 1,375 1,532 1,482 1,288 1,254 531 579 352 286 354 342 343 291 330 3Q-22 4Q-22 1Q-23 2Q-23 3Q-23 4Q-23 1Q-24 2Q-24 3Q-24 Sales volumes decreased during current quarter, while prices o
Slide 34: Segmental Details: Steel
CLASSIFICATION: C0 - NON-CONFIDENTIAL Segmental Details: Steel • Qatar Steel Company Q.S.C. produces a number of intermediate steel products. The production capacity of the plants are: Product (in 000 MT PA) Capacity1 DRI / HBI 2,300 Rebar 2,3002 Billets 2,520 Coil 240 * Total 7,360 Note: 1. Refers
Slide 35: Results: Steel – production & selling prices
CLASSIFICATION: C0 - NON-CONFIDENTIAL Analysis of production & Results: Steel selling prices ▪ Production: Production declined compared to same period of last year primarily lower operating rate, mainly due to challenging demand conditions; ▪ Production volumes increased compared to previous quarter
Slide 36: Results: Steel – revenue & net profit
CLASSIFICATION: C0 - NON-CONFIDENTIAL Analysis of segment Results: Steel revenue & net profit ▪ Revenue: Down compared to the same period last year, due to combined effect of lower prices and volumes. Both prices, and volumes were impacted by challenging construction markets both internationally and
Slide 37: Results: Steel – EBITDA margins
CLASSIFICATION: C0 - NON-CONFIDENTIAL Results: Steel Analysis of segment EBITDA margins 450 40% 35% 400 35% 350 28% 30% 24% 24% 25% 300 22% 25% 21% 250 19% 17% 20% 409 200 16% 13% 15% 13% 14% 13% 14% 15% 313 12% 300 280 150 213 10% 201 195 183 173 100 163 138 128 125 124 -12 -16 114 104 50 5% 71 -1%
Slide 38: Results: Steel – geographical analysis
CLASSIFICATION: C0 - NON-CONFIDENTIAL Geographical analysis of Results: Steel segment revenue ▪ Starting from 2Q-20, the Group decided to temporarily re-adjust capacity of domestic operations within the Steel segment to 0.8 million MT per annum of rebar (applicable to Qatar Operations) with an inten
Slide 39: Results: Steel – key segment products
CLASSIFICATION: C0 - NON-CONFIDENTIAL Results: Steel Key segment products analysis Rebars 734 623 647 640 625 623 640 616 610 279 237 319 341 282 348 317 272 302 3Q-22 4Q-22 1Q-23 2Q-23 3Q-23 4Q-23 1Q-24 2Q-24 3Q-24 Prices have declined on quarterly basis, whilst the sales volumes have improved marg
Slide 40: CAPEX (2024F – 2028F)
CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2024F – 2028F) 40 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 40
Slide 41: CAPEX (2024F – 2028F)
CLASSIFICATION: C0 - NON-CONFIDENTIAL CAPEX (2024F – 2028F) CAPITAL EXPENDITURE BY TYPE o CAPEX / PUD spend of QR 10.8 billion major capacity QR Bn 2024 2025 2026 2027 2028 Total addition in fertilizer segment (QR 4.2 bn in Qafco 7), PVC in Turnaround 0.4 0.5 0.3 0.5 0.40 2.0 QAPCO (via QVC) other C
Slide 42: Blue Ammonia Project
CLASSIFICATION: C0 - NON-CONFIDENTIAL Blue Ammonia is produced when the CO2 Blue Ammonia Project generated during conventional Ammonia production is captured and stored Key Highlights Strategic Partnership with QERS1 Building World’s largest Blue Ammonia facility Product Solar Power certification fr
Slide 43: New PVC Project & QVC restructuring
CLASSIFICATION: C0 - NON-CONFIDENTIAL New PVC Project & QVC restructuring Key Highlights of New PVC project First PVC plant in the State of Qatar Nameplate EPC awarded Source feedstock IQ will fund Project fully Construction capacity of valued at (i.e., Vinyl 44.8% of the USD 239 million/ integrated
Slide 44: Dividends and market capitalization
CLASSIFICATION: C0 - NON-CONFIDENTIAL Dividends and market capitalization 44 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 44
Slide 45: Dividends & Market Capitalization
CLASSIFICATION: C0 - NON-CONFIDENTIAL Dividends & Market Capitalization Payout Ratio (%) Dividend per share 83% 75% 100% 75% 100% 91% 94% 89% 60% 55% 82% 52% 72% 69% 67% 68% 70% 80% 55% 54% 54% 1.10 1.10 40% 1.00 0.80 0.85 0.78 0.75 0.70 0.55 0.60 0.50 0.50 0.50 0.50 0.35 0.35 0.40 0.40 0.40 0.33 0.
Slide 46: Historical performance (2016 - 2023)
CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2016 - 2023) 46 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 46
Slide 47: Historical performance (2016 - 2023)
CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2016 - 2023) Production (M MT’s) Sales Volumes (M MT’s) Production volumes and utilization rates remained steady since 2016 Movement sales volumes remained inline with the overall movement in production volumes Selling prices were influen
Slide 48: Historical performance (2016 - 2023)
CLASSIFICATION: C0 - NON-CONFIDENTIAL Historical performance (2016 - 2023) Revenue (QR Bn) Net income (QR Bn) * * Normalized profits Revenue trends moved in line with the selling prices Movements in revenue together with operating costs affected the net income growth Cash flow generation for the Gro
Slide 49: Governance Structure
CLASSIFICATION: C0 - NON-CONFIDENTIAL Governance Structure 49 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 49
Slide 50: Governance Structure
CLASSIFICATION: C0 - NON-CONFIDENTIAL Governance Structure Board Structure Governance and Compliance • IQ Board of Directors consists of eight (8) • IQ is firmly committed to implementing the Directors, of whom seven (7) were appointed by principles of good governance set out in the the Special Shar
Slide 51: Governance Structure
CLASSIFICATION: C0 - NON-CONFIDENTIAL Governance Structure Remuneration Board of Directors Disclosure and Transparency • The Company has developed a periodically revisited • The Board ensures that all disclosures are made in remuneration policy for Board members. The policy accordance with the requi
Slide 52: Sales and Marketing
CLASSIFICATION: C0 - NON-CONFIDENTIAL Sales and Marketing 52 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 52
Slide 53: Sales and Marketing
CLASSIFICATION: C0 - NON-CONFIDENTIAL Sales and Marketing • Qatar Chemical and Petrochemical Marketing and Distribution Company Q.J.S.C. (“Muntajat”), a wholly-owned company of the government of the State of Qatar, has the exclusive rights to purchase, market, sell and distribute the State’s product
Slide 54: For further information, Industries Qatar can be contacted
CLASSIFICATION: C0 - NON-CONFIDENTIAL For further information, Industries Qatar can be contacted as follows: Telephone: (974) 4013 2080 Fax: (974) 4013 9750 Email: iq.investorrelations@qatarenergy.qa or iq@qatarenergy.qa Address: PO Box 3212, Doha, State of Qatar Please refer to www.iq.com.qa for th