Petrochemicals and metals company Industries Qatar raised its second-quarter net profit 17.6 percent, according to Reuters' calculations, beating forecasts.

The Gulf's second-largest chemical producer by market value made a second-quarter net profit of 1.4 billion riyals ($384.7 million), based on calculations using earlier financial data.   

Analysts polled by Reuters had expected an average quarterly profit of 1.16 billion riyals. Industries Qatar posted a net profit of 2.6 billion riyals in the first half of the year, a company statement said.

'After adjusting for the price difference claim against the government of 1.2 billion riyals, (half-year) net profits have increased year-on-year by a remarkable 80 percent,' the statement said without elaborating on the adjustment.
 

'The strong half-yearly net profits can be attributed principally to buoyant steel prices feeding through to good segmental profitability, with quarterly gross margins in the steel business reaching 41.5 percent,' it said.   

Industries Qatar is one of the regional petrochemicals companies that have struggled through the global economic downturn, although market fundamentals have shown signs of recovery since late last year.

Its main rival, Saudi Basic Industries Corp (Sabic), the world's top chemical company by market value, reported a 177 percent rise in second-quarter earnings as new output came online, but it missed analysts' forecasts after being hit by weak selling prices.

While Sabic is predominantly a petrochemicals producer, Industries Qatar produces fertilizers, petrochemicals and steel. - Reuters