Industries Qatar is a regional powerhouse in the production of petrochemicals, steel and fertilisers. Qatar’s largest publicly-traded company aims to become the world’s biggest producer of ammonia and urea and a surge in global demand for fertilisers has helped it swell revenues over the last few years.
Like its larger rival SABIC, Industries Qatar uses its discounted access to gas to make petrochemicals cheaper than rivals from outside the region. However, in February this year the firm reported full-year earnings that fell short of analysts’ expectations.
Net income was $2bn compared with $1.40bn a year earlier, the company said in a statement to the Doha bourse. However, Global Investment House KSCC forecast a profit of $2.60bn, while EFG-Hermes Holding SAE put it at $2.30bn.
The coming months aren’t set to get any easier for Industries Qatar, which is majority-owned by Qatar Petroleum. The chemical maker will face lower demand for its products as the first simultaneous recession for six decades in the US, Japan and Germany weakens demand for packaging and car bumpers.