Oct. 14 (Bloomberg) -- Industries Qatar gained the most in a month after the second-biggest petrochemicals maker in the Middle East posted a 27 percent increase in third-quarter profit, beating analysts’ estimates.
The shares climbed 1.1 percent to close at 144.1 riyals in Doha after net income rose to 2.62 billion riyals ($720 million), according to Bloomberg calculations based on nine-month results provided by the company today. The mean estimate of five analysts was for a profit of 2.15 billion riyals, according to data compiled by Bloomberg.
Industries Qatar, which makes petrochemicals, fertilizer and steel, is utilizing the world’s third-largest natural gas reserves to increase output and diversify the Persian Gulf emirate’s economy away from petroleum exports. The company’s fertilizer unit ramped up its Qafco 5 plant in the first quarter with the Qafco 6 plant scheduled to start later this year. Ethylene prices gained 44 percent during the quarter, according to data compiled by Bloomberg.
“The volume from Qafco 5 and the price of petrochemicals had an impact” on earnings, said Ahmed Shehada, head of trading at Qatar National Bank Financial Services in Doha. “Based on the companies expansion in 2012 and 2013, with Qafco 6 coming into play, you are going to see stronger dividend payouts in the years ahead.”
Nine-month revenue increased to 14.2 billion riyals from 12.5 billion riyals, while earnings per share rose to 12.1 riyals from 11.35 riyals, according to the company statement.
The stock has gained 8.4 percent this year compared with a 3.3 percent decline for the benchmark QE Index.
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