Industries Qatar looking at petrochem expansion

2/25/2016 1:21:51 PM

(MENAFN- The Peninsula) Industries Qatar Chairman Saad Sherida Al Kaabi (centre) and other officials at the AGM yesterday in Doha.

By Sachin Kumar

DOHA: Industries Qatar one of the region’s largest listed industrial groups with interests in the production distribution and sale of a wide range of petrochemical fertiliser and steel products is planning for ethanebased petrochemicals. The company will take final decision after results of feasibility study said Saad Sherida Al Kaabi Chairman of the Board of Directors Industries Qatar yesterday.

“We are looking at expansion for ethane based petrochemicals mostly such as Qapco for instance. We are studying a possibility of expanding but until we are ready with feasibility study with which we can see it is beneficial for IQ (Industries Qatar) shareholders” said Al Kaabi replying to a question during the 13th Annual General Assembly meeting of Industries Qatar. “Qatar Petroleum (QP) is the biggest shareholder in IQ. It has to be beneficial for QP and shareholders of IQ before we can embark on such a project but we are studying it very hard and this is in the process of being finalised at some stage in near future.”

He said that the demand of steel is set to rise going forward which is good for company’s business. “We have huge ambition for steel business. We have very efficient plant it is well we have modified it. Going forward we see Qatar as very high demand market for steel so we see not issues regarding steel” he said.

Al Kaabi added that the group faced challenges during the financial year ended December 31 2015 following the crude oil price plunge through 2015 that significantly affected group’s product prices. Despite this and a notable decrease in product prices the group was nevertheless able to post a creditable net profit of QR4.4bn thereby exceeding 2015 group budget by more than 20 percent. This commendable result was achieved on the backdrop of the group recording the highest production and sales volumes since its inception in 2003.

He said that the group is also well-positioned both financially and operationally to mitigate the key risks arising from unanticipated depressed trading and economic environment as the group possess several unique competitive advantages: most notably an excellent financial position driven by strong liquidity positive debt metrics and robust cash flow generation unique cost positioning relatively younger and efficient operating asset base and the Qatari leaders of the group companies.

As the group’s financial performance is heavily depended on the macro-economic factors which are mostly not within our control the group has embarked on a number of initiatives those focus on improving both financial and operational performance through optimising costs and operations said Al Kaabi. These initiatives include detailed assessments of the group’s operational assets and the cost base with an objective of improving operational and cost efficiencies while ensuring Health Safety and Environment.

The Peninsula

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