DUBAI- Petrochemicals, metals and fertiliser producer Industries Qatar (IQ) posted a 37 percent rise in first-quarter net profit on Thursday, according to a statement, beating analysts' forecasts.
The Middle East's second-biggest petrochemicals company by market value reported a net profit of 1.3 billion riyals ($357.1 million) in the three months ending March 31, it said in a statement.
This compares with the 900 million riyals it posted in the corresponding period of last year. The average forecast of three analysts polled by Reuters was for a quarterly net profit of 1.10 billion riyals.
IQ's results are closely tied to oil prices and global economic growth because its products are used extensively in construction, agriculture, industry and manufacturing.
Higher product prices, stable sales volumes and continued focus on cost management were the driving factors behind the improved performance, it said.
Polyethylene prices had continued to recover, while fuel additive prices had improved notably compared to last year, it said, adding that stable oil prices also helped. Fertilizer and steel prices also improved, it said.
Sales volumes moderately improved from the previous year, it said, with polyethylene sales stronger through higher production after the segment was on an extended unplanned shutdown during the first quarter of 2017. Recovery in global demand had aided the company's fertilizer segment.
($1 = 3.6400 Qatar riyals)
(Reporting by Tom Arnold Editing by Alexandra Hudson) ((Tom.Arnold@thomsonreuters.com; +97144536265; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))
