Industries Of Qatar Co. · QSE:IQCD
Industries Of Qatar — Industries Qatar — FY2019 Earnings Presentation
39 slides from Industries Of Qatar's earnings presentation, Dec 31, 2019
Slide 1: Industries Qatar Investor Relations Presentation
Industries Qatar Investor Relations Presentation 31 December 2019 “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: About Industries Qatar
About Industries Qatar 3 Industries Qatar, IR Presentation, YE 2019
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 Doha Securities Market (precursor to the Qatar Stock Exchange) in 2003; • Qatar Petroleum
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 ▫ head count is circa 5,700 employees; • 51% Qatar Petroleum • 21.04% General Retirement 50% IQ and Social In
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 Al- Dr. Mohammed Yousef Al-Mulla Suwaidi Member Member Mr.
Slide 7: Competitive Advantages
Competitive Advantages • Assured feedstock • Solid liquidity position supply • No debt • Economies of scale • Strong cash flow • Synergy benefits generation even under • Operationally difficult conditions diversified • Sound dividend record • Stable EBITDA margin • A+ / A1 rated Strong Low cost fina
Slide 8: Results at a glance (2013-2019)
Results at a glance (2013-2019) 8 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 8
Slide 9: Results at a Glance (2013-2019)
Results at a Glance (2013-2019) Production (M MT’s) Sales Volumes (M MT’s) Production grew from 16.3 million MT’s in 2013 and peaked to reach 17.4 million MT’s in 2015, thereafter continued to remain relatively stable ▪ The sales volume grew over the period and reached its highest in 2018 ▪ Selling
Slide 10: Results at a Glance (2013-2019)
Results at a Glance (2013-2019) 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 Total Assets (QR Bn) Net
Slide 11: Results at a glance (For the year ended 2019)
Results at a glance (For the year ended 2019) 11 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 11
Slide 12: Key Highlights
Key Highlights Production (MT’000) Sales Volumes (MT’000) Selling Prices ($ / MT) Production of 17.0 million MT’s, Sales volumes of 9.5 million MT’s, Average Selling price for the year is marginally down on 2018. marginally down on 2018. In line with USD 405 / MT down by 14% versus Production affect
Slide 13: Net Profit Variance Analysis
Net Profit Variance Analysis Net profit of QR 2.6 billion, significantly down on last year ● driven by lower prices, sales volumes, partially offset by other income and income from associates ● OPEX decreased primarily due to lower production / sales. 13 Industries Qatar, IR Presentation, YE 2019 13
Slide 14: Geographic analysis – IQ Group revenue
Geographic analysis – IQ Group revenue Asia remained the Group’s largest market in 2019, while its presence in Americas and Indian sub-continent continued to be substantial Europe 4% Qatar North America Middle East 9% Asia 7% 15% 43% South America Africa Indian sub-continent 5% 4% 13% 14 Industries
Slide 15: Dividend and market statistics
Dividend and market statistics 15 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 15
Slide 16: Dividend Record & Market Statistics (2003-2018)
Dividend Record & Market Statistics (2003-2018) Payout Ratio (%) Dividend per share 83% 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 0.20 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201
Slide 17: Segmental Details
Segmental Details 17 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 17
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Slide 19: Segmental Details: Petrochemical
SegmentalDetails: Segmental Details Petrochemical • 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 m
Slide 20: Segmental Details (Petrochemical)
Segmental Details (Petrochemical) Production: Production down by 10% on last year, affected by periodic planned maintenance and unplanned shutdowns; Production decreased during the 4th quarter by 6% compared to the 3rd quarter of 2019, due to maintenance shutdowns. Selling Prices: Down on last
Slide 21: Segmental Details (Petrochemical)
Segmental Details (Petrochemical) Revenue: QR 4.4 billion, down by 25% on last year. Decrease due to lower volumes and prices across products; Revenue decreased during the 4th Quarter compared to the 3rd quarter of 2019, inline with declining selling prices. Net profit: QR 1.3 billion, down by
Slide 22: Segmental Details (Petrochemical)
Segmental Details (Petrochemical) 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 2019 Segment Revenue (%) 2018 Segment Revenue (%) 3% 1% 6% 4% 3% 7% 9% 9% 11% 51% 50% 8% 19% 19% A
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Slide 24: Segmental Details: Fertilizer
Segmental Details: Fertilizer • 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 2,880 Urea 4,468 Melamine 26 Total 7,397 • The segment’s primary feedstock is methane gas (which is used for the product
Slide 25: Segmental Details (Fertilizer)
Segmental Details (Fertilizer) Production: Production marginally increased by 2%, although affected by periodic planned maintenance and unplanned shutdowns; Production increased in the 4th quarter by 3% compared to the 3rd quarter of 2019, as there were minimal periodic planned maintenance and u
Slide 26: Segmental Details (Fertilizer)
Segmental Details (Fertilizer) Revenue: QR 4.4 billion, down by 9% on last year, mainly affected by decline in selling prices; Revenue increased by 3% in the 4th quarter compared to the 3rd quarter of 2019, mainly due to increase in sales volumes which was partially offset by decline in prices.
Slide 27: Segmental Details (Fertilizer)
Segmental Details (Fertilizer) Asia remains a main market for fertilizer segment Indian sub-continent is another key market for fertilizers along with North and South America 2019 Segment Revenue (%) 2018 Segment Revenue (%) 17% 10% 27% 35% 25% 24% 1% 24% 1% 7% 6% 1% 22% Asia Africa South Americ
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Slide 29: 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) Capacity DRI / HBI 2,300 Rebar 1,800 Billets 2,520 Coil 240 Total 6,860 • The segment’s primary raw material is oxide pellets and
Slide 30: Segmental Details (Steel)
Segmental Details (Steel) Production: Production down by 1%, affected by periodic planned maintenance shutdowns; Production decreased in the 4th quarter by 7% compared to the 3rd quarter of 2019, due to higher periodic maintenance shutdowns. Selling Prices: Down on last year by 12%, affected b
Slide 31: Segmental Details (Steel)
Segmental Details (Steel) Revenue: QR 5.1 billion, down by 12% on last year. Decrease primarily due to lower selling prices recorded during the current year; Revenue slightly declined in the 4th quarter compared to the 3rd quarter of 2019. Net Profit: QR 36 million, down by 95% on last year. R
Slide 32: Segmental Details (Steel)
Segmental Details (Steel) Asia remains a key market for steel products Qatar remains a another key market for IQ’s steel products 2019 Segment Revenue (%) 2018 Segment Revenue (%) 2% 21% 29% 45% 50% 5% 34% 3% 11% Asia Middle East Africa Qatar Indian-subcontinent America 32 Industries Qatar, IR P
Slide 33: CAPEX and Cash Flows (2020 - 2024)
CAPEX and Cash Flows (2020 - 2024) CAPITAL EXPENDITURE (in QR Billion) o Cumulative CAPEX / PUD spend of ~QR 4.6 2019 2020 2021 2022 2023 2024 billion across all segments; Capital Spares 0.1 0.1 0.1 0.1 0.0 0.0 o Qapco Catalysts 0.0 0.0 0.0 0.0 0.0 0.0 Turnaround / reliability related CAPEX of QR
Slide 34: Governance Structure
Governance Structure 34 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 34
Slide 35: Governance Structure
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 36: Governance Structure
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 37: Sales and Marketing
Sales and Marketing 37 INDUSTRIES QATAR | Quarterly Financial Update (2014 Q4) | Page 37
Slide 38: Sales and Marketing
Sales and Marketing • Qatar Chemical and Petrochemical Marketing and Distribution Company Q.J.S.C. (trading as “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 Fe
Slide 39: 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@qp.com.qa Address: PO Box 3212, Doha, State of Qatar Please refer to www.iq.com.qa for the latest information, publications, press releases and presentations about Industr