Industries Qatar reported an 89% year-over-year plunge in first-half net profit to QR 216 million, driven by a 31% decline in production volumes and a 46% drop in sales. The Doha-based industrial conglomerate, majority-owned by QatarEnergy, posted revenue of QR 5.9 billion for H1 2026, a 32% decrease from the same period last year.
The company’s second-quarter performance worsened, swinging to a net loss of QR 519 million from a profit of QR 734 million in Q1 2026. Revenue for Q2 alone fell 44% year-over-year to QR 2.4 billion. Cash and bank balances declined 17% to QR 8.6 billion by June 30, 2026, reflecting a QR 2.7 billion dividend payout for the second half of 2025 and ongoing capital expenditures. Industries Qatar maintained a debt-free balance sheet.
Production volumes across all segments fell to 6,083 thousand metric tons in H1 2026, down from 8,820 thousand metric tons in the prior-year period. Sales volumes collapsed 46% to 2,823 thousand metric tons, with a 72% quarter-on-quarter decline in Q2 to 622 thousand metric tons. Blended average selling prices rose 24% year-over-year to $586 per metric ton, accelerating to $781 per metric ton in Q2.
Segment performance diverged sharply. The petrochemicals unit, which accounts for 38% of revenue, saw production drop 36% to 952 thousand metric tons and revenue fall 40% to QR 1.5 billion. The segment posted a net loss of QR 240 million, with Q2 EBITDA margin turning negative at -12%, down from 20% in Q1. The fertilizers division, the world’s largest single-site urea producer, reported a 49% year-over-year production decline to 2.4 million metric tons and a 42% revenue drop to QR 2.2 billion. It recorded a net loss of QR 49 million, with Q2 EBITDA margin collapsing to -90% despite a 22% year-over-year price increase.
The steel segment, operated by Qatar Steel, was the sole profitable unit. Production rose 6% to 2.7 million metric tons, while revenue edged down 6% to QR 2.2 billion. Selling prices improved 38% to $654 per metric ton, and net profit increased 38% to QR 367 million. EBITDA margins in the steel segment strengthened to 26% in Q2 from 22% in Q1.
Industries Qatar’s shares traded near a 52-week low of $9.685, closing at $9.957 following the results. The company’s market capitalization stood at QR 66.5 billion as of June 2026, making it the second-largest company on the Qatar Stock Exchange. QatarEnergy holds a 51% stake in the conglomerate, with foreign institutional ownership at 9.2%, and the company maintains credit ratings of AA- from S&P and Aa3 from Moody’s, both with stable outlooks.
