(MENAFN) Industries Qatar's (IQ) net income for 2015 is forecast for a further fall. IQ's net income was down from USD2.38 billion in 2012/2013 to USD1.72 billion in 2014, The Peninsula Qatar reported.
IQ reported poor first-quarter numbers with net income of USD260 million, which is lowest quarterly income in the past six years."We believe earnings to be at trough currently but do not see a significant recovery in the near," SICO analysts said.
The earnings are impacted by price weakness across all segments: Fertilisers, petrochemicals and steel. Profitability in fertiliser and steel segment should remain under pressure due to lower urea and steel prices.
Petrochemical segment is unlikely to benefit in low oil regime as IQ's feedstock is gas based implying no relief from lower oil prices. The investment case for IQ in 2015-16 will be driven by price recovery across all segments.
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