Industries Qatar Q P S C posts a net profit of QR 3.4 billion for the nine-month period ended 30 September 2025.

FOR IMMEDIATE RELEASE

• Earnings per share (EPS) of QR 0.56 for 9M-25 compared to QR 0.64 for 9M-24.

• Current quarter profit of QR 1.4 billion, significantly up on last quarter primarily driven by improved gross margin.

• Group operations continued to remain robust despite routine maintenance shutdowns, with average reliability factor holding steady at around 97% and facility availability improving compared to previous year.

• Group's liquidity continues to remain robust with a total cash and bank balances of QR 9.5 billion, after paying 2H-2024 dividend of QR 2.6 billion and 2025 interim dividend of QR 1.6 billion.

  Doha, Qatar; 28 October 2025: Industries Qatar ("IQ" or "the Group"; QE Ticker: IQCD), today reported a net profit of QR 3.4 billion for the nine-month period ended 30 September 2025, lower compared to the same period of last year. Updates on macroeconomic environment

  The global macroeconomy saw several challenges, with global GDP growth revised downward by several institutions due to policy adjustments, geopolitical risks and structural changes. Central banks have adopted expansionary measures, including rate cuts to support growth. Persistent geopolitical uncertainties continue to weigh on recovery. Overall, while the economy has improved from 2022 lows, it faces ongoing headwinds and the new year in 2026 with a cautious outlook.

  The downstream petrochemical industry is facing severe challenges driven by overcapacity, economic pressures, sustainability demands and regional policy shifts. Post-COVID investments in new capacities in ethylene crackers, polyethylene, polymer plants, and derivative units have outpaced demand growth, pushing operating rates for base chemicals like ethylene and propylene to multi-decade lows. Producers are considering short-term and permanent asset closures amid depressed margins. Demand growth remains slow, primarily from polyethylene and polypropylene for packaging and automotive sectors. These dynamics have triggered consolidation and capacity rationalization, while lower industrial production and consumption rates continue to weigh on supply-demand balance, leaving the industry outlook uncertain. For nitrogen-based fertilizers, Urea prices have remained resilient and relatively stable, supported by tight global supply and steady demand driven by rising food needs, expansion of arable land, adoption of advanced agricultural technologies, seasonal demand from key markets and stock depletion. On the supply side, China's continued export restrictions and potential trade barriers have constrained availability, while moderating natural gas costs have provided some relief. These factors collectively sustained stable fertilizer pricing despite global uncertainties.

  Meanwhile, the global steel industry continues to struggle with overcapacity and muted demand across international, regional and domestic markets. High financing costs and slow growth in the construction sector have further pressured the industry. Demand in China is declining due to its real estate downturn, while production in several regions continues to expand. In contrast, many mills in mature markets face closures amid lower demand and utilization rates, leaving the overall outlook uncertain.

  Operational performance updates

  Key Performance Indicators	9M-25	9M-24	Var (%) [9M-25 v. 9M-24]	3Q-25	2Q-25	Var (%) [3Q-25 v. 2Q-25]
  Production (MT' Million)	13,451	12,796	5%	4,690	4,329	8%
  Utilization Rates (%)	95%	99%	-	99%	91%	-
  Average Reliability Factor (%)	97%	97%	-	96%	97%	-

  The Group's operations for the year have remained resilient and stable, supported by improved facility availability and reliability. The restart of the DR-1 facility in Q4 2024, along with the EF-4 restart earlier in the year, enhanced overall availability compared to last year. The Group's continued commitment to operational excellence, reliable performance and strict adherence to HSE standards has ensured optimum reliability. These improvements have contributed to higher production, while stable operations allow greater focus on efficiency initiatives. For year-to-date 2025, production has increased, and utilization has remained relatively stable.

  On a quarter-on-quarter basis, production volumes rose due to improved plant availability and utilisation, as facilities operated for more days compared to the previous quarter, supported by fewer planned and unplanned shutdowns.

  Financial performance updates - 9M-25 vs 9M-24

  Key Performance Indicators	9M-25	9M-24 (Re-stated)	Variance (%)
  Average Selling Price (USD / MT)	480	453	6%
  Sales Volumes (MT'000)	8,053	7,867	2%
  Revenue (QR' billion)	13.7	12.7	8%
  EBITDA (QR' billion)	5.0	5.0	-
  Net Profit (QR' billion)	3.4	3.8	-12%
  Earnings per share (QR)	0.56	0.64	-12%
  EBITDA (%)	36%	39%	-

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

  The group reported a consolidated net profit of QR 3.4 billion for the nine-month period ended 30 September 2025, lower versus same period of last year. EBITDA for the period is broadly unchanged year-on-year.

  On a like-for-like basis-excluding one-off impacts from 2024 related to the reversal of a financial guarantee provision and gains on a subsidiary acquisition recognized in 9M-24, the consolidated net profit for the nine-month period ended 30 September 2025 showed only a marginal decline versus the prior year.

  Group revenue for 9M-25 have shown moderate growth compared to the same period last year, driven by a combination of slightly higher sales volumes and improved selling prices. Both factors contributed marginally to overall revenue performance.

  The Group's financial performance for the nine-month period was largely influenced by the following factors:

  Analysis of IQ's net earnings - 9M-25 vs 9M-24:

  (Amounts in QR millions)

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

• Product prices

  Blended average product prices marginally improved versus 9M-24 and contributed positively to group net earnings compared to the same period of last year. It is worth noting that product prices have continued to stabilize over the last few quarters after peaking during second half of 2022 with fertilizer prices showing notable significant resilience. This price stability was supported by improved demand from some of the larger agricultural economies, supply challenges arising from regional geo-political uncertainty, global trade disruptions, plant turnarounds, export restrictions by key producing economies, as well as fiscal and monetary policy adjustments in some larger economies. Conversely, demand for downstream products was impacted by muted economic forecast, tighter monetary conditions and regional demand, although recent months have shown a positive trend amid improving macro-economic fundamentals.

• Sales volumes

  Sales volumes for 9M-25 increased marginally compared to the same period last year, primarily driven by stabilization of demand, resulting from gradual easing of macro-economic challenges and supply bottlenecks together with increased production. Despite ongoing regional uncertainties and variations in shipment timing across some segments, overall sales volumes improved.

• Operating cost

  In line with increased production, higher sales volumes, and improved selling prices, operating costs for 9M-25 rose compared to 9M-24. The increase was primarily driven by higher variable costs linked to higher volumes, price-linked feedstock and raw material expenses, and unfavorable inventory movements, along with the impact of general cost inflation.

• Other Income

Other operating and non-operating income declined significantly compared to the same period last year, primarily due to a lower interest rate environment, the absence of one-off gain related to reversal of a bank guarantee, and gains recorded on acquisition of a subsidiary during 9M-2024.

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

During Q3-2025, the Group reported a consolidated net profit of QR 1.4 billion, marking a significant increase compared to Q2-2025. EBITDA also improved notably on a quarter-on-quarter basis.

Revenue for the quarter rose, driven by a combination of higher selling prices and increased sales volumes. Price improvements were observed across all segments except polyethylene, while volume growth was primarily supported by fuel additives and fertilizers.

The Group's financial performance for the current quarter was largely influenced by the following factors:

Analysis of IQ's net earnings - 3Q-25 vs 2Q-25

Amounts in QR millions

• Product prices

  Average product prices improved during the quarter, primarily driven by a notable increase in fertilizer prices, also supported by gains in steel pricing dynamics. Fertilizer prices strengthened on the back of renewed demand, export restrictions and bans imposed on certain producers. Meanwhile, steel prices benefited from increased demand for intermediary products and low-carbon steel solutions.

• Sales Volumes

  Sales volumes improved marginally on last quarter due to improved production and further stabilization of demand. Polyethylene volumes remained stable, while fuel additives sales increased. Fertilizer volumes have also increased, driven by renewed buying interest from major agricultural economies coupled with export restrictions in key producing regions.

• Operating Costs

  Operating costs have improved marginally due to lower direct costs, mainly due to lower utilities cost during the quarter mainly in the fertilizer segment, thereby improving the gross margin.

• Other Income

Other Income decline during the current quarter due to lower share of income from associates and other non-operating income.

Note: Cash and bank balances has been reported based on non-IFRS based proportionate consolidation

Group's financial position continues to remain strong, with robust proportionately consolidated cash and bank balances as of 30 September 2025, after accounting for a dividend payout relating to H2-2024 dividend of QR 2.6 billion and 2025 interim dividend amounting to QR 1.6 billion, capital expenditures related to on-going projects, turnarounds and routine PPE additions. Currently, the Group has no longterm debt obligations.

Group's reported total assets and total group equity are shown as per the table above. The Group generated positive operating cash flows1of QR 3.4 billion, with free cash flows1of ~QR 1.9 billion during the first nine months of 2025.

Note: The above figures have been reported based on non-IFRS-based proportionate consolidation

Segmental performance analysis - 9M-25 vs 9M-24

The petrochemicals segment reported a net profit of ~QR 714 million for 9M-25, reflecting a notable decline compared to same period in 2024. This decrease was mainly driven by lower revenue and a reduction in operating margin, influenced by an increase in operating costs.

Revenue softened due to lower sales volumes and a marginal decline in selling prices. Both factors were impacted by a mix of internal and external challenges. Selling prices eased compared to last year, primarily due to macroeconomic headwinds, including weaker demand, oversupply from cautious buying behavior, geopolitical tensions, and crude price volatility. Additionally, volumes were affected by unplanned shutdowns within both the polyethylene and fuel additives segments.

Operating margins came under significant pressure due to higher operating costs driven by both internal and external factors, leading to overall lower net profit versus the same period last year. Cost optimization efforts are ongoing to manage costs whilst ensuring production and overall plant operations are efficiently and reliably managed.

1Reported based on non-IFRS based proportionate consolidation.