Industries Qatar Q P S C posts a net profit of QR 2.0 billion for the six-month period ended 30 June 2025

FOR IMMEDIATE RELEASE

• The Board of Directors has approved the distribution of an interim cash dividend of QAR 0.26 per share, representing a payout ratio equivalent to 80% of net income of the period.

• Earnings per share (EPS) of QR 0.32 for 1H-25 compared to QR 0.44 for 1H-24.

• 1H-25 results impacted due to lower operating margins and lower other income.

• Group operations continued to remain robust amid maintenance shutdowns within operating facilities with an average reliability factor of around 98%.

• Group's liquidity continues to remain robust with a total cash and bank balances of QR 9.9 billion, after paying H2-2024 dividend of QR 2.6 billion.

• Rating agency S&P reaffirmed IQ's issuer credit rating at AA- with a stable outlook confirming IQ Group's strong business and financial position.

  Doha, Qatar; 7 August 2025: Industries Qatar ("IQ" or "the Group"; QE Ticker: IQCD), today reported a net profit of QR 2.0 billion for the six-month period ended 30 June 2025, representing a decline compared to 1H-24. Updates on macroeconomic environment

  During the first half of 2025, the global macroeconomic landscape remained subdued, reflecting continued volatility across both advanced and emerging economies. Growth momentum weakened amid persistent geopolitical tensions and sustained monetary tightening by major central banks. The aftermath of electoral transitions in several key economies added further uncertainty, dampening investor confidence and curbing private sector spending. Although global inflation showed signs of moderating relative to the previous year, elevated production costs driven by lingering supply chain disruptions continue to constrain economic activity in several regions, making near-term forecasting increasingly uncertain.

  The petrochemical industry remained under pressure throughout 1H-2025, grappling with a multifaceted set of challenges. Demand for key petrochemical products, including ethylene and its derivatives, remained largely soft due to muted industrial activity and cautious consumer spending across major

  economies. At the same time, the industry witnessed significant capacity additions, contributing to lower global utilization rates and intensifying competitive pressures. This imbalance between supply and demand translated into margin compression, historically low operating rates, and in some cases, temporary shutdowns or delays in planned projects.

  Petrochemical pricing dynamics were also affected by fluctuations in both feedstock and energy costs. Ethylene prices experienced notable volatility, driven by oversupply in key markets and weaker downstream demand. Crude oil price swings-prompted by a combination of OPEC+ production decisions, ongoing geopolitical risks, and fluctuations in global inventory levels-added another layer of cost-side uncertainty, particularly for naphtha-based petrochemical producers. Meanwhile, regulatory pressures continued to mount, particularly in relation to environmental and decarbonization targets. For operators of legacy assets, meeting emerging environmental standards has required substantial capital investment-an undertaking many have postponed due to narrowing profit margins and ongoing market uncertainty. Overall, the petrochemical sector is facing challenges stemming from overcapacity, geopolitical tensions and fluctuations in crude and ethylene prices, along with broader economic uncertainty-all of which are broadly affecting petrochemical prices.

  The nitrogen fertilizer industry experienced relative stability in 1H-2025, following the sharp price hikes triggered by the 2022 energy crisis. Prices have since moderated and stabilized, supported by a more balanced global supply-demand dynamics. Regional production curtailments and export restrictions from major producing economies helped tighten market conditions, allowing prices to hold firm despite subdued agricultural demand. Input costs remained relatively stable, driven by improved energy availability in key markets, which supported stable and more predictable production costs for ammonia-based fertilizers. However, farmer affordability continued to pose challenges in several regions, influenced by weaker crop prices and reduced purchasing power. Adding to the stability, confirmed orders from key fertilizer-consuming economies provided further support to market confidence and pricing resilience.

  Macro-economic conditions across the steel industry over the past twelve months continued to remain challenging due to saturated GDP growth, over capacity, relatively higher inflation, and interest rates, tighter monetary policies, and weaker manufacturing activities in the key markets. The global steel industry faced persistent overcapacity, particularly in larger geographies like China, which led to increased exports and downward pressure on steel prices. Weak demand, especially in the construction and real estate sector, exerted a lot of pressure on steel prices which led to capacity closures. In addition, construction activities and demand typically decline during summer periods notably in the GCC and Middle East region adding further downward pressure on demand and prices.

  Operational performance updates

  Key Performance Indicators	1H-25	1H-24	Var (%) [1H-25 v. 1H-24]	2Q-25	1Q-25	Var (%) [2Q-25 v. 1Q-25]
  Production (MT' Million)	8,730	8,515	3%	4,298	4,432	-3%
  Utilization Rates (%)	92%	98%	-	91%	93%	-
  Average Reliability Factor (%)	98%	96%	-	97%	98%	-

  Operational performance remained resilient across the Group's segments during the period, despite the impact of both planned and unplanned maintenance shutdowns. During the current quarter, planned maintenance activities were successfully completed at certain facilities within the fertilizer segment. In parallel, some facilities within the steel and polyethylene segments underwent unplanned shutdowns, undertaken as precautionary measures to ensure operational reliability and safeguard critical assets. The fuel additives segment resumed operations at full capacity during the current quarter, following an unplanned shutdown in the previous period. Despite the progressive ramp-up of steel production for previously mothballed facilities, utilization rates continue to demonstrate operational resilience.

  Compared to the same period of the previous year, production volumes increased, as lower production from the fertilizer segment was fully offset by higher production from the steel segment. Production levels

  within the petrochemical segment remained broadly unchanged. On a quarter-on-quarter basis, production volumes declined marginally, reflecting the impact of both planned and unplanned shutdowns across all segments. This was partially offset by higher production in the fuel additives segment.

  No major health, safety, or environmental (HSE) incidents were reported during the period, reflecting the Group's continued focus on safe, reliable, and efficient operations.

  Financial performance updates - 1H-25 vs 1H-24

  Key Performance Indicators	1H-25	1H-24 (Re-stated)	Variance (%)
  Average Selling Price (USD / MT)	472	448	5%
  Sales Volumes (MT'000)	5,180	5,188	0%
  Revenue (QR' billion)	8.7	8.3	5%
  EBITDA (QR' billion)	3.0	3.4	-10%
  Net Profit (QR' billion)	2.0	2.7	-27%
  Earnings per share (QR)	0.32	0.44	-27%
  EBITDA (%)	35%	41%	-

  Revenue and EBITDA figures have been reported using non-IFRS proportionate consolidation methodology. Additionally, net profit for the year 2024 has been re-instated to reflect the fair value gain recognized from the change of control in QAFAC.

  The group reported a consolidated net profit of QR 2.0 billion for the six-month period ended 30 June 2025, reflecting a decline versus 1H-24 restated net profit1.

  Upon excluding the one-off impacts related to reversal of provision for financial guarantee and gains on acquisition of a subsidiary which were recognized in 1H-24, the consolidated net profit for the six-month period ended 30 June 2025 represents a moderate decline against same period last year, reflecting the lower operating margins. While revenue for 1H-2025 showed a slight improvement versus the first half of the previous year.

  Analysis of IQ's net earnings - 1H-24 vs 1H-25

  Amounts in QR millions

  2,661 172 252

  -477

  0

  1,G55

  -654

  H1-24

  (Restated)

  Price Volume Opex Fin. Charges Others H1-25

  The group's financial performance for the six-month period ended 30 June 2025 was primarily driven by the following key factors:

  • Average product prices

  Blended average product prices of USD 472 / MT for 1H-25 marginally improved versus 1H-24 and contributed positively toward the group's net earnings. This improvement was primarily driven by improved nitrogen fertilizer prices which fully offset reduction in average realized prices in other

  11H-2024 net profit has been restated to reflect the additional fair value gain on the revaluation of Purchase Price Allocation for control change of Qafac as of 9thJune 2024.

  segments. Fertilizer prices have stabilized in recent quarters, following the volatility seen throughout 2023. This trend was supported by renewed demand from key markets such as India, falling inventory levels, and supply-side constraints including export restrictions from major producers like China. Additional pressure came from production shortfalls due to facility shutdowns and cost escalation.

• Sales volumes

  Sales volumes for 1H-2025 remained relatively stable compared to the same period in 2024. This performance was achieved despite challenging market conditions, characterized by weaker demand across all operating segments, volatile macroeconomic factors, regional instability, and ongoing uncertainty around global trade. The Group's ability to maintain sales volumes was supported by improved production levels and more effective sales planning.

• Operating cost

  Operating costs for 1H-2025 have increased moderately compared to the same period in 2025. The rise was primarily driven by higher price-linked variable costs, elevated fixed operating costs associated with maintenance shutdowns, and the impact of general inflation.

• Other Non-Operating Income

The Group's financial performance for the period was also impacted due to lower non-operating income as a result of a lower interest rate environment, and absence of one-off gain on reversal of provision for financial guarantee and gains recognized on acquisition of a subsidiary in 1H-2024.

Note: Revenue and EBITDA measures have been reported based on non-IFRS based proportionate consolidation

Analysis of IQ's net earnings - 1Q-25 vs 2Q-25

(Amounts in QR millions)

754

993

0

35 G62

-480

-340

1Q-25 Price Volume Opex Fin. Charges Others 2Q-25

During 2Q-25, the Group's net earnings marginally declined compared to 1Q-25. This decline was primarily driven by a sequential decline in average product prices and an increase in operating costs. Average selling prices were marginally down due to prevailing macroeconomic conditions underpinned by regional uncertainty, supply-demand imbalance, and weather conditions demand effects. Operating costs have escalated in line with increased sales volumes. The reduction in net income was almost offset by enhanced sales volumes mainly within the fertilizer and steel segments. Improvement in fertilizer volumes were attributable to stable fertilizer fundamentals while uplift in the steel volumes was primarily driven by improved sales volumes of the segment's intermediate products in the regional markets.

Revenue for 2Q-25 improved moderately versus 1Q-25 primarily due to improved revenues within fertilizer and steel segments. Fertilizer revenue improved due to a marginal improvement in volumes while steel revenue grew notably due to significant volume growth.

Production during the current quarter was marginally down due to lower operating days within the group's larger producing facilities due to planned and unplanned shutdowns. These planned shutdowns are an essential part of the group's operations in order ensure efficient and cost-effective operations, maximize HSE performance, and maintain optimum plant reliability and availability.