Industries Qatar gets state nod for $319m settlement

BIG BUSINESS: Industries Qatar produces petrochemicals, steel and fertilisers. (Getty Images)

Industries Qatar, the second-largest Gulf chemical producer by market value, said on Monday the government has approved a total of QR1.16bn ($318.8m) in settlement for steel prices caps.

Industries Qatar said earlier in May it had asked for QR1.8bn in compensation for the government's capping of steel prices in 2008 and had received approval from the ministry of economy and finance for QR1bn so far.

The company, which produces petrochemicals, steel and fertilisers, revised its first quarter net profit upward to QR1.4bn from QR612.3m in April, after adding QR800m in compensation for steel caps.

Earlier this month, it said it got approval from the ministry of finance for an additional 200 million riyals in compensation for steel price caps that would be added to second quarter earnings.

The government put a limit on steel prices in the local market in the second and third quarters of 2008 because of increased demand fuelled by the construction boom in the Gulf state.

Industries Qatar said in April it expected its 2009 net profit to fall 34 percent to QR4.8bn due to weaker global demand, falling prices and more supply from other producers.

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