Industries Qatar Q P S C posts net profit of QR 4.5 billion for the year ended 31 December 2024

CLASSIFICATION: C0 - NON-CONFIDENTIAL

FOR IMMEDIATE RELEASE

Industries Qatar posts a net profit of QR 4.5 billion

for the year ended 31 December 2024

The Board of Directors recommends a dividend for 2H-24 of QR 0.43 per share, bringing the total dividend for the year to QR 0.74 per share. This equates to a payout ratio of 100% of net earnings for 2024.

• Full year results moderately down on previous year amid absence of one-off other income.
• Operating income improved on the backdrop of improved operating costs while prices have shown stabilization.
• Group operations continued to remain robust amid routine maintenance shutdowns, with average reliability factor remained around 96%.
• Earnings per share (EPS) of QR 0.74 for the year compared to QR 0.78 for last year.
• Group's Fuel Additive business reached new milestone by reaching highest volumes in derivative production.
• Group's liquidity continues to remain robust with a total cash and bank balances of QR 11.4 billion, after paying full 2023 dividend of QR 4.7

billion and 2024 interim dividend of QR 1.9 billion.

Doha, Qatar; 02 February 2025: Industries Qatar ("IQ" or "the Group"; QE Ticker: IQCD), today reported a net profit of QR 4.5 billion for the year ended 31 December 2024, representing a decrease of 5% compared to last year.

Commenting on the Group's financial and operational performance for the year ended on 31 December 2024, His Excellency Mr. Saad Sherida Al-Kaabi,Chairman of the Board of Directors and the Managing Director, said:

"In the face of a dynamic and often unpredictable economic landscape, Industries Qatar has remained steadfast in its pursuit of excellence. Our dedication to sustainable value creation and strategic investments has allowed us to deliver commendable financial results and reinforce our commitment to maximize shareholder value.

I would like extend my sincere thanks to the Board of Directors, Chief Executive Officers, senior management, and all the employees ofthe group companies, without whom we would not have achieved these results.

Going forward, we will continue to strive for operational excellence by focusing on our human capital and environmental sustainability. Our commitment to responsible growth and long-term value creation for our shareholders will remain at the forefront of our strategic initiatives."

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• Sales volumes
  Sales volumes for YE-24 improved marginally versus YE-23, owing to broadly improved production and stabilization of demand, resulting from gradual easing of macro-economic challenges and supply- bottlenecks. Despite ongoing regional uncertainties and variations in shipment timing across some segments, overall sales volumes have marginally improved.
• Operating cost
  Operating cost for YE-24 improved versus YE-23. This decrease in the year-on-year operating cost was primarily linked to lower variable cost driven by price-linked feedstock costs and raw material costs and favorable inventory movements, partially offset by higher general cost inflation.
• Other Non-Operating Income
  Group's current year financial performance was impacted due to lower one of non-operating income, as the group recorded this year QR 143 million pertaining to reversal of bank guarantee previously provided to group's steel Associate Solb Steel. While in 2023, the group recorded QR 610 million relating to reversal of impairment of non-current asset and investment in associates within steel segment. The group also recognized this year QR 144 million relating to fair value gain on re- measurement of previously held Interest in joint venture (QAFAC).
  Analysis of IQ's net earnings - 4Q-24 vs 3Q-24

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

( Amounts in QR millions)

During the current quarter 4Q-24, IQ's net earnings declined moderately versus 3Q-24 to reach QR 1.0 billion. This decline was primarily due to lower sales volumes primarily within the fertilizer segment owing to lower production together with lower profitability within the petrochemical segment due to higher operating costs.

From a segmental perspective, petrochemical segment's performance declined versus the last quarter on the back of heightened operating costs. Petrochemical prices broadly improved versus the previous quarter and help to offset the impact of heightened operating costs. Profitability within the fertilizer segment declined moderately on the backdrop of decreased revenue on account lower sales volumes (amid lower production). In line with the lower sales volumes, operating costs too have improved versus

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Segmental performance highlights

Petrochemicals:

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

Segmental performance analysis - YE-24 vs YE-23

Petrochemicals segment reported a net profit of QR 1.4 billion for YE-24, showing a marginal improvement compared to YE-2023. This increase was primarily attributed to higher segment's revenue driven by improved sales volumes, while prices continued to recover and stabilize. Despite challenging macroeconomic conditions, the segment witnessed signs of recovery during the year.

Effective navigation of market conditions, capitalizing on improved macroeconomic factors, and maintaining operational efficiency contributed in maintaining segment's profit. This recovery was reflected in moderately improved sales volumes, although average selling prices were slightly lower than last year. Production improved as fuel additive operations, which were on planned maintenance in fourth quarter of last year, reached a milestone by producing the highest volume of MTBE since inception, this segmental achievement was partially offset by few planned and unplanned shutdown within other polyethylene facilities during the year.

Segmental performance analysis - 4Q-24 vs 3Q-24

On a quarter-on-quarter basis, the segment's net earnings declined primarily due to lower operating margin on account of higher operating costs. Revenue marginally declined versus the previous quarter on the backdrop of lower sales volumes while prices marginally increased. Production marginally down versus the previous quarter due to few unplanned facility maintenances within the polyethylene segment. On an overall basis, lower sales volumes together with an increase in operating costs resulted a quarter- on-quarter decline in the segmental net profit.

Fertilizers:

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Segmental performance analysis - YE-24 vs YE-23

Fertilizer segment reported a net profit of ~ QR 2.0 billion for YE-24, showing a marginal improvement versus YE-23. This moderate increase in net profit was primarily driven by reduced operating costs associated with reduced raw material (feedstock) costs and favorable inventory changes.

Despite an improvement in profits, the segment's revenue decreased marginally during YE 24 compared to the previous year. This decline was due to a slight decrease in selling prices, partially offset by marginally increased sales volumes. Selling prices declined marginally versus YE-23, as nitrogen fertilizer prices have stabilized to their long-term averages since peaking during second half of 2022. Sales volumes remained relatively stable as the macroeconomic conditions in the fertilizer segment have started to strengthen further. Production also stabilized despite a few unplanned outages during the year in addition to the routine planned facility maintenance in 4Q-24.

Segmental performance analysis - 4Q-24 vs 3Q-24

On a quarter-on-quarter basis, segmental revenue declined versus the previous quarter, primarily due to moderately lower sales volumes. The reduction in sales volumes was primarily due to lower production amid planned shutdown during the current quarter. Selling prices improved slightly compared to last quarter and continued the trend of stabilizing toward their long-term averages.

The segment's net profit for 4Q-24 decreased notably compared to last quarter, driven mainly by lower revenue resulting from lower sales volumes. Profitability, measured by EBITDA margin broadly remained unchanged in-line with improved operating costs.

Steel:

Segmental performance analysis - YE-24 vs YE-23

Steel segment reported a net profit of QR 565 million, notably lower versus the full year of 2024. This reduction in net profit was primarily driven by lower gross margin together with comparatively lower one- off other non-operating income.

Segment's gross margin affected due to lower revenue driven by lower price together with a marginal decline in the sales volumes. Steel prices declined broadly on account of higher supply and softening of demand in both domestic and international demand. Simultaneously, sales volumes were also down due to challenging demand conditions. Construction demand continued to remain a key constraint due to macro-economic environment prevailed mostly during the year with most Central Banks continued to persist with their hawkish monetary policies, although conditions start to improve since 2H-24 as result of gradual global recovery, and particularly China, a larger contributor to construction and real estate economy has taken a series of policy measures to re-ignite its domestic construction sector.

In YE-24, the segment recognized a one-off non-operating income of QR 143 million from the reversal of a bank guarantee previously provided to one of its associates. In contrast, YE-23 included a one-off non- operating income of QR 610 million from the reversal of an impairment of property, plant, and equipment

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at Qatar Steel facilities together with reversal related to impairment of investment in an associate. These movement was the main driver for the profit variance between this year and last year.

Segmental performance analysis - 4Q-24 vs 3Q-24

On a quarter-on-quarter basis, segmental profit inclined significantly versus 3Q-24 mainly on improved income from its share of associate income. The operating income declined due to a sequential increase in operating costs despite a marginal increase in revenue resulting in lower operating margin.

Segment revenue increased marginally, primarily due to moderately higher sales volumes. This improvement was largely attributable to enhanced production on account of better plant availability and reliability following restart of DR-1 during 4Q-2024. Selling prices have declined moderately versus the previous quarter reflecting relatively volatile state of the global and regional steel market.

Proposed Dividend Distribution

Given the liquidity required for current and future capital projects, along with the current short- and medium-term macroeconomic outlook, the Board of Directors proposes a 2H-2024 dividend distribution of QR 2.6 billion (equating to QR 0.43 per share), bringing the total annual dividend distribution for the year ended 31 December 2024 of QR 4.5 billion, equivalent to a payout of QR 0.74 per share for the full year, subject to necessary approval in the Annual General Assembly Meeting.

Earnings Call

Industries Qatar will host an Earnings call with investors to discuss the latest results, on Thursday, 6th February 2025 at 1:30 pm Doha time. The IR presentation that accompanies the conference call will be posted on the 'financial information' page within the Investor Relations section at IQ's website.

-Ends-

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About Industries Qatar (IQ)

Industries Qatar Q.P.S.C. was incorporated as a Qatari joint stock company on April 19, 2003. The business operations of the company comprise the direct holding of shares in the following subsidiary and joint venture companies: (i) Qatar Steel Company Q.P.S.C. ("QS"), a wholly-owned subsidiary, engaged in the manufacture and sale of steel billets and reinforcing bars; (ii) Qatar Petrochemical Company Limited QSC ("QAPCO"), a joint venture owned 80% by IQ, engaged in the production of ethylene, low-density polyethylene ("LDPE"), linear low-density polyethylene ("LLDPE") and Sulphur; (iii) Qatar Fertilizer Company SAQ ("QAFCO"), a subsidiary 100% owned by IQ, engaged in the manufacture of ammonia and urea; and (iv) Qatar Fuel Additives Company Limited QSC ("QAFAC"), a joint venture owned 50% by IQ, engaged in the production of methanol and methyl-tertiary-butyl-ether ("MTBE").

The operations of the subsidiary and joint ventures remain independently managed by their respective management teams.

For more information about the earnings announcement, email iq@qatarenergy.qaor iq.investorrelations@qatarenergy.qaor visit www.iq.com.qa

DISCLAIMER

The companies in which Industries Qatar Q.P.S.C. directly and indirectly owns investments are separate entities. In this press release, "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 concerning the financial condition, results of operations and businesses of Industries Qatar Q.P.S.C. All statements other than statements of historical fact are deemed to be forward-looking statements, being statements of future expectations that are based on current expectations and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, operations and business performance or events impacting the group to differ materially from those expressed or as may be inferred from these statements.

There are a number of factors that could affect the realization of these forward-looking statements such as: (a) price fluctuations in crude oil and natural gas, (b) changes in demand or market conditions for the group's products, (c) loss of market share and industry competition, (d) environmental risks and natural disasters, (e) changes in legislative, fiscal and regulatory conditions, (f) changes in economic and financial market conditions and (g) political risks. As such, results could differ substantially from those stated, or as may be inferred from the forward-looking statements contained herein. All forward-looking statements contained in this report are made as of the date of this document.

Industries Qatar Q.P.S.C., it's Directors, officers, advisors, contractors and agents shall not be liable in any way for any costs, losses or other detrimental effects resulting or arising from the use of or reliance by any party on any forward-looking statement and / or other material contained herein. Industries Qatar Q.P.S.C., its subsidiary, joint ventures and associated companies are further in no way obliged to update or publish revisions to any forward-looking statement or any other material contained herein which may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reason whatsoever. Industries Qatar Q.P.S.C. does not guarantee the accuracy of the historical statements contained herein.

GENERAL NOTES

Industries Qatar's accounting year follows the calendar year. No adjustment has been made for leap years. Values expressed in US $'s have been translated at the rate of US $1 = QR 3.64.

Amounts relating to income statement, including revenue, net profits, production, sales volumes, have been computed and reported for the purpose of this press release on proportionate basis, based on the share of ownership of IQ in its respective joint ventures. Specifically, Petrochemical segment's revenue is computed by taking the Group share of revenue in Qapco and Qafac. Qapco's revenue is computed by taking the share of revenue in its joint ventures namely Qatofin, QVC and QPPC. This revenue may differ from the revenues reported in the consolidated financial statements.

DEFINITIONS

Adjusted Free Cash Flow: Cash Flow From Operations - Total CAPEX - Dividends • CAGR: 5-Year Compound Annual Growth Rate • Cash

Realization Ratio: Cash Flow From Operations / Net Profit x 100 • Debt to Equity: (Current Debt + Long-Term Debt) / Equity x 100 • Dividend Yield:

Total Cash Dividend / Closing Market Capitalization x 100 • DRI: Direct Reduced Iron • EBITDA: Earnings Before Interest, Tax, Depreciation and

Amortization calculated as (Net Profit + Interest Expense + Depreciation + Amortization) • EPS: Earnings per Share (Net Profit / Number of Ordinary

Shares outstanding at the year-end) • Free Cash Flow: Cash Flow From Operations - Total CAPEX • HBI: Hot Briquetted Iron • LDPE: Low Density

Poly Ethylene • LLDPE: Linear Low Density Poly Ethylene • mmBtu: Million British Thermal Units • MTPA: Metric Tons Per Annum • MTBE: Methyl

Tertiary Butyl Ether • Payout Ratio: Total Cash Dividend / Net Profit x 100 • P/E: Price to Earnings (Closing market capitalization / Net Profit) •

Utilization: Production Volume / Rated Capacity x 100