Industries Of Qatar Co. · QSE:IQCD
Industries Of Qatar — Industries Qatar — Q1 2021 Earnings Presentation
47 slides from Industries Of Qatar's earnings presentation, Mar 31, 2021
Slide 1: Industries Qatar Investor Relations Presentation
Industries Qatar Investor Relations Presentation 31 March 2021 “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
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 may contain forward-looking statements
Slide 3: Table of Content
Table of Content 1. About IQ 2. Group Structure 3. Board of Directors 4. Competitive advantages 5. Results at a Glance (2014 – 2020) 6. Results at a Glance (For the three-month period ended 31 March 2021) 7. Dividends and market statistics 8. Segmental details 9. CAPEX and Cash flows (2021F – 2025F)
Slide 4: About IQ
About IQ • Industries Qatar Q.P.S.C. (“IQ” or “the group”; QE • IQ is credit rated by Standard & Poor’s ticker: IQCD) was incorporated on April 19, 2003 (A+; stable) and Moody’s (A1; stable); and listed on the Qatar Stock Exchange in 2003; • IQ is the second largest company at Qatar • Qatar Petroleu
Slide 5: Group Structure
Group Structure • Through its group companies, IQ operates in 3 business segments - Petrochemical, Fertilizer and Steel; • Production facilities are principally located in the State of Qatar. Key shareholders of IQ: • 51.0% Qatar Petroleum (Parent) • 21.21% General Retirement and Social Insurance Au
Slide 6: Board of Directors
Board of Directors • The Board of Directors of the Group consists of: H.E. Mr. Saad Sherida Al-Kaabi Chairman and Managing Director Mr. Abdulaziz Mohammed Al-Mannai Mr. Abdulla Ahmad Al-Hussaini Vice Chairman Member Mr. Abdulrahman Mohammed Dr. Mohammed Yousef Al-Mulla Al-Suwaidi Member Member Mr. A
Slide 7: Competitive Advantages
Competitive Advantages • Assured • Solid liquidity position feedstock supply • No debt • Strong cash flow • Economies of generation even under scale difficult conditions • Synergy benefits • Sound dividend record • Stable EBITDA margin • Operationally • A+ / A1 rating affirmed diversified Strong Low
Slide 8: Results at a glance (2014 - 2020)
Results at a glance (2014 - 2020) 8 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 8
Slide 9: Results at a Glance (2014 - 2020): Production and Prices
Results at a Glance (2014 - 2020) Production (M MT’s) Sales Volumes (M MT’s) Production steadily grew from 16.9 million MT’s in 2014 and peaked to reach 17.4 million MT’s in 2015. The decline in production in 2020 was mainly owed to mothballing decision of certain steel facilities and Qafco’s tempor
Slide 10: Results at a Glance (2014 - 2020): Revenue and Net Income
Results at a Glance (2014 - 2020) Revenue (QR Bn) Net income (QR Bn) * Revenue trends moved in line with the selling prices ▪ Movements in revenue together with operating costs affected the net income growth ▪ Cash across the Group continued to grow and reached its peak in 2018. Decline in net cash
Slide 11: Results at a glance (three months ended 31 March 2021)
Results at a glance (For the three-month period ended 31 March 2021) 11 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 11
Slide 12: Key Highlights: Production and Sales Volumes
Key Highlights Production (MT’000) • Q1-21 production volumes declined as compared to Q1-20, mainly due mothballing of certain steel facilities which started since mid of 2020, periodic maintenance shutdowns at certain Qafco facilities (Trains 1-4) and commercial shutdown at MTBE facilities. • Q1-21
Slide 13: Key Highlights: Revenue, Net Profit and Net Cash
Key Highlights Revenue (QR Million) • Q1-21 Group revenue increased significantly versus Q1-20, mainly on the back of overall increase in blended selling prices and sales volumes. • Q1-21 Group revenue increased significantly in comparison to Q4-20, mainly due to the increase in product prices. Net
Slide 14: Net Profit Variance Analysis
Net Profit Variance Analysis Net profit of QR 1.5 billion, up on Q1-20, mainly driven by higher product prices, sales volumes and OPEX savings. This was partially offset by the negative movements due to absence of QP processing fees, which was recorded last year in line with the temporary gas proces
Slide 15: IQ Cash flow generation
IQ Cash flow generation IQ’s free cash flow generation capability remained robust QR ‘millions IAS 31 IAS 31 Free cash flows generated during the three- month period ended 31 March 2021: QR 1.8 billion 15 15 Industries Qatar, IR Presentation, Q1-21
Slide 16: Robust EBITDA margins
Robust EBITDA margins Despite the volatile trends in commodity prices, IQ’s EBITDA margins continue to remain robust 100 46% 50% 90 40% 40% 41% 45% Oil price (USD/bbl), brent 39% IQ EBIDTA Margins (%) 80 37% 40% 70 30% 35% 60 28% 27% 30% 50 22% 25% 40 20% 30 15% 20 10% 10 5% 0 0% Oct-18 Jan-19 Q4-18
Slide 17: IQ's operating rates
IQ’s operating rates IQ’s operating rates remained stable 114.1% 114.0% 110.7% 107.6% 106.9% 106.6% 106.4% 106.3% 103.9% 103.7% 102.9% 101.0% 99.7% 99.4% 99.1% 98.1% 96.6% 93.9% 93.3% 92.2% 91.8% 91.3% 89.0% 88.5% 86.8% 86.5% 82.7% 82.5% 80.2% 80.0% 70.6% 61.4% Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4
Slide 18: Geographic analysis – IQ Group revenue
Geographic analysis – IQ Group revenue Asia remained Group’s largest market, while its presence in Americas and Middle East continued to be substantial Europe 3% Qatar North America Middle East 12% Asia, ex. ISC 17% 12% 31% South America Africa Indian sub-continent 5% 5% 15% 18 Industries Qatar, IR
Slide 19: Dividend and market statistics
Dividend and market statistics 19 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 19
Slide 20: Dividend Record & Market Statistics
Dividend Record & Market Statistics Payout Ratio (%) Dividend per share 83% 100% 91% 94% 89% 60% 55% 82% 52% 72% 69% 67% 68% 70% 55% 54% 54% 1.10 40% 0.80 0.85 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 0.20 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 21: Segmental Details
Segmental Details 21 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 21
Slide 22: Segmental Details: Petrochemicals
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 Total 2,605 • The segment’s primary feedstocks are
Slide 23: Segmental Details: Petrochemicals Production and Prices
Analysis of production & Segmental Details: Petrochemicals selling prices Production: Production up by 9% compared to Q1-20, as the segment had lesser number of planned and unplanned maintenance shutdowns during 2021 compared to last year; Q1-21 production volumes slightly down on Q4-20, mainly
Slide 24: Segmental Details: Petrochemicals Revenue and Net Profit
Segmental Details: Petrochemicals Analysis of segment revenue & net profit Revenue: QR 1.4 billion, up by 45% compared to the same period last year. This increase in revenue was mainly linked to higher product prices (+41%) and better sales volumes (+2%); Q1-21 revenue improved by 12% as compare
Slide 25: Segmental Details: Petrochemicals EBITDA Margins
Segmental Details: Petrochemicals Analysis of segment EBITDA margins Segment’s EBITDA margins continued to remain on a positive trajectory 800 60% 54% 700 47% 50% 44% 600 42% 40% 500 400 27% 30% 750 575 300 20% 455 200 315 253 Q2 10% 100 0 0% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 25 EBITDA (QR ‘millions) EB
Slide 26: Segmental Details: Petrochemicals Geographical Analysis
Geographical analysis of Segmental Details: Petrochemicals segment revenue Asia remains a main market for IQ for Polyethylene (LDPE and LLDPE) and MTBE Indian sub-continent remains a key market for Polyethylene (LDPE & LLDPE) and Methanol Q1-21 Segment Revenue (%) Q1-20 Segment Revenue (%) 4% 4%
Slide 27: Segmental Details: Petrochemicals Key Products
Segmental Details: Petrochemicals Key segment products analysis LDPE LLDPE (contributed ~54% of the segment revenue in Q1-21) (contributed ~18% of the segment revenue in Q1-21) 990 1,083 1,397 896 829 821 811 900 1,040 1,124 722 961 907 896 823 940 138 150 142 152 159 160 167 151 71 68 47 43 46 65 6
Slide 28: Segmental Details: Fertilizers
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 methane gas (which is used for the produc
Slide 29: Segmental Details: Fertilizers Production and Prices
Analysis of production & Segmental Details: Fertilizers selling prices Production: Production declined by 10% compared to Q1-20, as Qafco trains 1-4 underwent higher days of maintenance shutdowns during Q1-21 compared to Q1-20; Q1-21 production declined by 6% compared to Q4-20 due to lowered pla
Slide 30: Segmental Details: Fertilizers Revenue and Net Profit
Analysis of segment Segmental Details: Fertilizers revenue & net profit Revenue: QR 1.6 billion, up by 55% compared to Q1-20, mainly due to positive growth in product prices (+39%) and sales volumes (+55%); Revenue increased by 13% in Q1-21 compared to the Q4-20, mainly due to recoveries noted i
Slide 31: Segmental Details: Fertilizers EBITDA Margins
Segmental Details: Fertilizers Analysis of segment EBITDA margins Segment’s EBITDA margins continued to remain robust 900 60% 53% 800 50% 49% 47% 50% 700 44% 600 40% 500 30% 847 400 692 300 20% 496 457 441 200 Q2 10% 100 0 0% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 31 EBITDA (QR ‘millions) EBITDA margins (%)
Slide 32: Segmental Details: Fertilizers Geographical Analysis
Geographical analysis of Segmental Details: Fertilizers segment revenue Americas remains a main market for fertilizer segment Asia is another key market for fertilizers along with Indian sub-continent Q1-21 Segment Revenue (%) Q1-20 Segment Revenue (%) 12% 15% 21% 21% 21% 18% 43% 33% 3% 6% 7% As
Slide 33: Segmental Details: Fertilizers Key Products
Segmental Details: Fertilizers Key segment products analysis Urea (contributed ~89% of the segment revenue in Q1-21) 1,408 1,281 1,058 1,178 1,043 970 828 714 251 267 233 227 249 316 221 240 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Sales volumes during 2020 were affected due to the recognitio
Slide 34: Segmental Details: Steel
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 1,800* Billets 2,520 * Coil 240 Total 6,860 1 Production capacity reflect IQ’s share in the respe
Slide 35: Segmental Details: Steel Production and Prices
Analysis of production & Segmental Details: Steel selling prices Production: Production down by 49% compared to Q1-20, due to management’s decision to mothball certain facilities; Production increased in Q1-21 by 24% compared to Q4-20, due to a maintenance shutdown carried out in Q4-20. Sellin
Slide 36: Segmental Details: Steel Revenue and Net Profit
Analysis of segment Segmental Details: Steel revenue & net profit Revenue: QR 1.2 billion, down by 6% on Q1-20 amid decline in sales volumes (-23%) due to management’s decision to mothball certain steel facilities starting from Q2-20; Revenue increased by 85% in Q1-21 compared to Q4-20 due to be
Slide 37: Segmental Details: Steel EBITDA Margins
Segmental Details: Steel Analysis of segment EBITDA margins Steel segment’s EBITDA margins continued to incline following the mothballing decision 350 30% 24% 300 25% 250 20% 200 16% 13% 15% 300 150 10% 100 5% 104 50 71 Q2 -1% -2% 0% 0 -16 -12 -50 -5% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 37 EBITDA (QR ‘mil
Slide 38: Segmental Details: Steel Geographical Analysis
Geographical analysis of Segmental Details: Steel segment revenue Starting from the second quarter of 2020, the Group decided to temporarily resize the capacity of domestic operations within the Steel segment to 0.8 million MT per annum of rebar with an intent to primarily cater local sector deman
Slide 39: Segmental Details: Steel Key Products
Segmental Details: Steel Key segment products analysis Rebars (contributed ~63% of the segment revenue in Q1-21) 453 555 621 517 523 497 530 547 492 460 629 551 228 235 244 342 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Selling price improved starting from Q2-20 as the management decided to con
Slide 40: CAPEX & Cash flows (2021F – 2025F)
CAPEX & Cash flows (2021F – 2025F) 40 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 40
Slide 41: CAPEX and Cash Flows (2021F – 2025F)
CAPEX and Cash Flows (2021F – 2025F) o CAPEX / PUD spend of QR 5.2 billion across CAPITAL EXPENDITURE (in QR Billion) 2021 2022 2023 2024 2025 all segments doe 2021-2025 ▪ No capacity Capital Spares 0.1 0.1 0.0 0.0 0.0 related CAPEX and mostly related to reliability Catalysts 0.0 0.0 0.0 0.0 0.0 and
Slide 42: Governance Structure
Governance Structure 42 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 42
Slide 43: Governance Structure: Board Structure and Compliance
Governance Structure Board Structure Governance and Compliance • IQ Board of Directors consists of seven (7) • IQ is firmly committed to implementing the Directors, all of whom were appointed by the principles of good governance set out in the Special Shareholder, which is Qatar Petroleum. QP Govern
Slide 44: Governance Structure: Remuneration and Disclosure
Governance Structure Remuneration Disclosure and Transparency Board of Directors • The Board ensures that all disclosures are made in • The Company has developed a periodically revisited accordance with the requirements set by regulatory remuneration policy for Board members. The policy has authorit
Slide 45: Sales and Marketing
Sales and Marketing 45 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 45
Slide 46: Sales and Marketing
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 production of Petrochemical and Fertilizer re
Slide 47: For further information, Industries Qatar can be contacted
For further information, Industries Qatar can be contacted as follows: Telephone: (974) 4013 2080 Fax: (974) 4013 9750 Email: iq.investorrelations@qp.com.qa or iq@qp.com.qa Address: PO Box 3212, Doha, State of Qatar Please refer to www.iq.com.qa for the latest information, publications, press releas