Investor Presentaiton
Net Profit Variance Analysis
Net profit (normalized) of QR 2.1 billion, down on 2019 mainly driven by lower prices, sales volumes, sales of expensive inventories from previous
periods (reported within OPEX). This was partially offset by recognition of Qafco's gas processing fees for first seven months and OPEX savings,
including feedstock cost not recognized under the temporary gas processing arrangement for Qafco trains 1-4 and lower sales volumes on account of
Qatar Steel's moth-balling of certain facilities.
The results were also affected by the following two one-off bookings:
recognition of one-of impairment loss of QR 1.4 billion related to steel segment's mothballing of certain facilities in Qatar and QMC;
recognition of one-off fair value and bargain purchase gain of QR 1.4 billion, when accounting for the effects of transition from equity accounting to
consolidation of Qafco's 100% stake, amid completion of the acquisition of 25% minority stake in Qafco.
2,575
14
-622
-12%
QR 'millions
One-offs
Maintenance
shutdowns,
Qafco 1-4
temporary
arrangement &
QS mothballing
No feedstock costs for
Qafco trains 1-4 until
31/7/20, QS low
volumes & sales of
expensive inventories
-7%
2,256
1,409
2,088
1,975
2,450
-327
-11
-199
-113
687
-1,378
-2,495
2019
Price
Volume
QP
Processing
OPEX
Others
Fees
Finance 2020
Charges (Before
One-offs)|
| Addtional
Impairment Qafco
(QS & Fair-Value | PPE
QMC) & Bargain | Depr-
2020
(normal-
ized)
25% of
Qafco's
profits for
eciation
first 9
Purchase
Gain
- Effect of
PPA
25% stake in Qafco, acquired with effect from 01 Jan 2020, has added
QR 224 million to the overall profitability (normalized) of the Group for
the financial year ended 31 December 2020
months
until 30-
Sep-20
classified
as part of
Retained
earnings
2020 (as
reported in
published
Financial
Statements)
Industries Qatar, IR Presentation, YE 2020View entire presentation