Industries Qatar, the Persian Gulf country’s second-largest company by market value, said fourth-quarter profit fell 19 percent from a year earlier, missing analyst estimates.
Net income for the three months ended Dec. 31 was 1.7 billion riyals, the company said in an e-mailed release. The median estimate of 5 analysts was for a profit of 2.04 billion riyals, according to data compiled by Bloomberg.
The “impact of lower petrochemical prices largely offset by higher fertilizer volumes” will lead to a “muted performance” compared with the third quarter, Ahmed Shams El Din, Cairo-based director of equity research at EFG-Hermes Holding SAE, said in an e-mail before the results were announced. El Din said he forecast net income of 2.04 billion riyals for the company.
Ethylene prices in Japan were $1,205 a metric ton on Feb. 3, 6.6 percent lower than a year earlier, according to data compiled by Bloomberg. Qafco-5, a new plant owned by Industries Qatar’s fertilizer unit, is scheduled to reach full output this month after construction was finished last year, raising ammonia output by 73 percent.
Industries Qatar’s results come after Saudi Basic Industries Corp., the world’s largest petrochemicals maker, said fourth-quarter profit dropped 10 percent, missing analysts’ estimates.
Industries Qatar’s share price fell 0.3 percent today to 134 riyals. The price has declined 10 percent over the past year compared with a 3.6 percent decline for the QE Index of Qatari companies.