Industries Qatar to get $319m settlement
Doha, June 1, 2009
Industries Qatar, the second-largest Gulf chemical producer by market value, said on Monday the government has approved a total of 1.16 billion riyals ($318.8 million) in settlement for steel prices caps.
Industries Qatar said earlier in May it had asked for 1.8 billion riyals in compensation for the government's capping of steel prices in 2008 and had received approval from the ministry of economy and finance for 1 billion riyals so far.
The company, which produces petrochemicals, steel and fertilizers, revised its first quarter net profit upward to 1.4 billion riyals from 612.3 million riyals in April, after adding 800 million riyals in compensation for steel caps.
Earlier this month, it said it got approval from the ministry of finance for an additional 200 million riyals in compensation for steel price caps that would be added to second quarter earnings.
The government put a limit on steel prices in the local market in the second and third quarters of 2008 because of increased demand fuelled by the construction boom in the Gulf state.
Industries Qatar said in April it expected its 2009 net profit to fall 34 percent to 4.8 billion riyals due to weaker global demand, falling prices and more supply from other producers.-Reuters