Industries Qatar gets state nod for USD 319 million settlements
Tuesday, 02 Jun 2009
Arabian Business quoted Industries Qatar said that the government has approved a total of QAR 1.16 billion in settlement for steel prices caps.
Industries Qatar said that earlier in May it had asked for QAR 1.8 billion in compensation for the government's capping of steel prices in 2008 and had received approval from the ministry of economy and finance for QAR 1 billion so far.
The company, which produces petrochemicals, steel and fertilizers, revised its Q1 net profit upward to QAR 1.4 billion from QAR 612.3 million in April, after adding QR800m in compensation for steel caps.
Earlier this month, it said that it got approval from the ministry of finance for an additional QAR 200 million in compensation for steel price caps that would be added to Q2 earnings.
The government put a limit on steel prices in the local market in the Q2 and Q3 of 2008 because of increased demand fuelled by the construction boom in the Gulf state.
Industries Qatar said that in April it expected its 2009 net profit to fall 34% to QAR 4.8 billion due to weaker global demand, falling prices and more supply from other producers.
