Blended product prices significantly surged 55% year-on-year to $747 per metric tonnes. The growth in product prices translated into an increase of QR2.8bn in the group's net earnings. The price increase was mainly linked to elevated market prices across all the segments, on account of constructive macroeconomic drivers.
Sales volumes for the quarter increased by 9% versus the same period of last year, primarily driven by higher plant operating rates, leading to improved production volumes.
The group operating cost increased by 59% on a yearly basis, primarily linked to higher variable cost on account of increased sales volumes and end-product price indexed raw material cost.
The company's financial position continues to remain robust, with cash and bank balances at QR12.6bn at the end of Q1, 2022, after accounting for a dividend payout relating to the financial year 2021, amounting to QR6bn. Currently, the group has no long-term debt obligations.
IQ's total assets and total equity reached QR38.8bn and QR36.2bn respectively, in Q1, 2022. The group generated positive operating cash flows of QR2.8bn, with free cash flows of QR2.6bn during the review period.
The petrochemicals segment reported a net profit of QR673mn, up 11% year-on-year, primarily linked to improved product prices owing to better macroeconomic dynamics.
Blended product prices for the segment improved 18%, against the backdrop of firm demand and higher energy prices, coupled with supply deficits. Sales volumes improved by 13% on a yearly basis.
The growth in selling prices combined with higher sales volumes, led segmental revenue to expand 32% to QR1.8bn.
The fertiliser segment’s net profit was QR1.7bn, showing an increase of 194% year-on-year, due to a 147% growth in revenue. owing to improved selling prices. Selling prices improved significantly by 113% and reflected positively on the segmental performance.
The steel segment reported a revenue of QR1.3bn, and net profit of QR261mn, up 6% and 1% on a yearly basis, respectively.
The average selling prices improved by 18% due to increase in demand linked to elevated construction activity carried forward from the latter part of 2020, coupled with higher raw material costs globally. Sales volumes declined by 10%, mainly on lower billet sales made during Q1, 2022.
The steel segment’s associate that produces iron oxide pellets, Foulath Holdings, reported commendable financial results against a backdrop of improved operations. Share of results from Foulath Holdings increased by 164% to QR57mn.
