Please go ahead. Thank you, Saskia. Hi. Hello, everyone. This is Bobby Sarkar here, research at QNB Financial Services. I wanted to welcome everyone to Industries Qatar's second quarter 2022 results conference call. On this call from QatarEnergy's Privatized Companies Affairs Group, we have Mohammed Al-Sulaiti, who is the Manager in Privatized Companies Affairs, Saffan Mohammed, who is the acting Assistant Manager in financial operations, Rashid Al-Mohannadi, who is the Senior Financial Management Analyst, and Riaz Khan, who is the Investor Relations Officer. We will conduct this conference with management first briefly reviewing the company's results, followed by a Q&A session. I would like to now turn the call over to Riaz. Riaz, please go ahead. Thank you, Bobby. Good afternoon, and thank you all for joining us. Hope you're all doing great. Before we go into the business and performance updates of IQ, I would like to mention that this call is purely for the investors of IQ, and no media representatives should be attending this call. Moreover, please note that this call is subject to IQ's disclaimer statements as detailed on slide number two of the IR deck. Moving on to the call, on the seventh of August, IQ published its results for the six-month period ended 30 of June 2022. Today in this call, we'll go through these results and provide you an update on key financial and operational highlights. We have structured our call as follows. At first, I will provide you with quick insights on IQ's ownership structure, its competitive advantages, and overall governance structure. Secondly, Saffan will brief you on IQ's key operational and financial performance metrics. Later, I will provide you with an update on latest segmental performance. Finally, we will open the floor for the Q&A session. To start with, as detailed on slide five, the ownership structure of IQ comprises of QatarEnergy with 51% stake. The rest is in the free float held by various domestic and international corporates and individuals. IQ is credit rated by S&P with A+ and Moody's with A.1 credit rating with a stable outlook. QatarEnergy, being the main shareholder of IQ, provides most of the head office functions through a service level agreement. The operations of IQ group companies are independently managed by its respective board of directors along with senior management team. In terms of competitive strengths, as detailed on slide eight, the group is well-positioned with several competitive advantages it possesses strategically, operationally, as well as financially. These strengths include an efficient and well-maintained asset base, a qualified and highly trained workforce, a short supply of feedstock and competitively priced energy contracts, lower operating costs, and a dedicated marketing team in form of Muntajat to market group's petrochemicals and fertilizer products. Finally, most importantly, a well-experienced senior management team. As detailed on slide 10, from competitive positioning perspective, IQ ranks among top-tier companies within the regional downstream space across most of the matrices. In terms of governance structure of IQ, you may refer to slides 48 and 49 of the IR deck, which covers various aspects of IQ's code of corporate governance in detail. I will now hand over to Safwan. Thank you, Riaz. Good afternoon. Thank you all for joining the call. Starting with macroeconomic environment which remained uneven during the first six months of 2022, where demand for most of the downstream products slightly inched downward, mainly due to China's COVID-linked lockdowns and cautious approach from our buyers. On the other hand, supply side was affected by Russia and Ukraine conflict, enforcing sharp rises in energy prices, challenging plant economics, especially for the European producers where gas prices significantly went up. On an overall basis, commodity prices were essentially balanced bearish during the first quarter of 2022, whereas during the second quarter of 2022, despite uncertainties over recessionary fears, prices slightly improved on back of persistent higher energy prices and supply-side constraints. Moving on to the financial performance for the first six months of 2022. As detailed on slide number 16 of the IR deck, the group reported a net profit of QAR 5.4 billion, as compared to a net profit of QAR 3.5 billion for the same period of last year, showing a growth of 57% versus last year. Group's improved financial performance versus last year was largely attributable to improved product prices, which on average incline billion in group's bottom line earnings, as you can see from slide number 17 of the IR deck. Sales volume increased by 3% versus first half of 2021, primarily driven by higher plant operating rates, leading into improved production volumes and contributing QAR 209 million positively to the current period's profitability versus the first half of 2021. The overall growth in selling prices and sales volumes led to an overall growth in revenue for the group, which increased by 56% during the first half of 2022 and reached QAR 14.3 billion. As detailed on Slide 15, group's production levels were up on last year by 5%. There were a few reasons for that. Restart of previously mothballed DR2 facility with a larger capacity, together with higher plant operating days noted within fuel additives segment, contributed towards the overall increase in production volumes in the current year. Moving on. Quarter-on-quarter performance. Compared to the first quarter of 2022, group revenue and net profit remained flat, where growth in selling prices were almost offset by lower sales volumes. Decline in sales volumes was mainly linked to lower fertilizer sales volumes during the second quarter of 2022, as Qafco's first quarter sales volumes were boosted by additional volumes on account of timing of shipments carried forward from the fourth quarter of 2022. Prices slightly improved on the back of persistent higher energy prices and supply side constraints despite recent demand related concerns. On robust business models and the strength of our global supply chains continue to leverage our resilience and provided flexibility to our operations. Whereas our continued positioning of a low-cost operator ensured our competitive edge. Moreover, as detailed on Slide 19, IQ EBITDA margins continue to remain robust. Also, we continue to build our strong financial position with improved cash flow generation capabilities, and the group generated QAR 4.6 billion in terms of free cash flows during the current period, as detailed on Slide 18. Now I will hand over to Riaz to cover the segmental performance of the group. I will start on Slide 25. Performance of Petchem segment improved with a net profit of QAR 1.5 billion for the first six months of 2022, with an increase of 1% versus the same period for the last year. Improvement in segmental revenue was mainly offset by higher OPEX. Segment's blended product prices rose by 17% on a year-on-year basis, while sales volumes increased by 6%. Segmental revenue for the period reached QAR 3.86 billion, with an improvement of 24% versus the same period of last year. As detailed on Slide 26, segment's EBITDA margin continue to remain strong. In terms of segment revenue by geography, as detailed on Slide 27, Asia remains the main market for PE and LDPE, whereas Indian subcontinent remains a key market for methanol and polyethylene. Moving on to the fertilizers segment, as detailed on Slide 31. The segment reported a net profit of QAR 3.3 billion for the current period, with an increase of 115% versus the first half of last year. This increase was mainly driven by growth in revenues, which increased by 107% to reach QAR 7.95 billion. Selling prices improved by 100% versus the same period of last year, while sales volumes increased by 4%. On the other hand, production volumes slightly declined versus the last year. As detailed on Slide 32, segment's EBITDA margins continued to remain robust. In terms of segment revenue by geography, as detailed on Slide 33, North and South Americas remain main market for fertilizers, along with Indian subcontinent and Asia. Now let's discuss the steel segment, and you may refer to Slides 35-40. Steel segment reported a net profit of QAR 621 million, up by 25% versus first half of 2021. Improved segmental profits was mainly driven by higher revenues, which increased by 11% versus first half of 2021. Additionally, segment's associate that produces iron oxide pellets for Lat Holdings reported commendable financial results against the backdrop of improved operations. Growth in revenue was mainly driven by higher selling prices, which increased by 13% on an average on a year-on-year basis, mainly driven by higher steel and iron ore prices prevailing internationally. Sales volumes remained relatively flat against the backdrop of softening domestic demand. Moving on to Slide 38, segment's EBITDA margin continued to remain robust following the mothballing decision. Now we will open the floor for the Q&A session. Hi, operator. Thank you. Can we open up the call for Q&A, please? Thank you. Certainly. Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Once again, that is star one for your questions today. Our first question comes from Alex Korenev of JPMorgan. Please go ahead. Thanks, guys. I've only just managed to get on the call. I had some problems getting on, if you addressed this in your discussions, I apologize. Can you just talk me through What drove the cost savings in the steel business and whether that's sustainable going forward? That's my first question. Similarly, we look at the fertilizer business, the cost in the second quarter, is that roughly what we should expect going forward? Thanks. Alex, answer to your question on the steel segment. Basically, what had happened on the steel segment. The steel segment, if you look at the production in the second quarter, or put it the other way, the sales volume in the second quarter is lower than the production, which means we are holding some inventory. Most of part of your cost is sitting in your inventory. That is why you see there's improved EBITDA margin. That will get normalized going forward. Once your sales get normalized, part of your operating cost will move into your cost of goods sold. In the second quarter, because your production has not moved into your cost of goods sold, your part of your fixed cost, your part of your production cost has not moved into inventory, you see a hike in your EBITDA margin. That is why you see lower operating cost or higher profitability in steel. That will get normalized and you will see historical profitability in the steel. Coming into fertilizer, what had happened in the second quarter, we had unplanned shutdowns. When you have unplanned shutdowns, the unplanned cost, the cost associated with unplanned shutdowns are not capitalized and they moved into your profit and loss account. Therefore, obviously, your OPEX increases and your margins generally goes down compared to a normalized margin. That's why you see fertilizer margins are lower than the previous quarter. Thanks. Just on the unplanned shutdown. Am I right in thinking the actual production levels were up on the quarter? Sales were down a little bit. How much did you lose from production perspective? Could you just talk us through how you expect fertilizer volumes to play out in the second half? In the second half of the second quarter, we had little bit of planned shutdown and unplanned shutdown. The production was very marginally down, around 3%. As per our expectations, unless there is unplanned shutdown, we don't materially expect any production losses. Any production to be lost in the second half of the year. We expect operations to be pretty much normal unless here and there few operating days to be for normal shutdowns. Other than that, we don't expect any major shutdowns like we had for the major GSD for Qafco on the fourth quarter of last year. We are not expecting any of those major shutdowns, so operations going to be normal. Thanks very much. Thank you. We now move on to our next question from Shashank Lanka of Bank of America. Please go ahead. Yes, thank you very much for the presentation and the opportunity to ask questions. I have three questions. The first one is on the fertilizer segment. We do see that your EBITDA margins fell from 50% to 46% in Q2, and you did highlight that this was due to the OPEX increase due to the unplanned shutdown. I'm just wondering how the feedstock costs played out in Q2, because if I look at your presentation, prices for urea were up slightly quarter-on-quarter on the realized prices you had. Is it fair to assume that most of the margin drop was mainly because of the OPEX cost increase due to the shutdown and feedstock prices kind of remained constant? That's the first question. Shashank, you are right. Basically what happens usually with the feedstock supplier, generally you have a take-or-pay agreement. In case even if you don't, you have a committed arrangement to take your feedstock. What happens if the shutdown is a planned shutdown, as per your accounting policy, you will capitalize it. If it is an unplanned shutdown, you will charge into your P&L. In this case, this feedstock plus any other cost associated with your shutdown will go through your P&L. That's what happened here. It's an accounting adjustment, so it's charged to your P&L. Is it fair to assume that your feedstock prices for Qafco were kind of constant or stable Q-on-Q? Q2 versus Q1. As long as the prices remain stable, yes, it is. Okay, great. Thank you. My second question is just on this acquisition, the melamine business, right? Where you acquired 100%. Can you talk about what impact that'll have on your profitability going forward. Thank you. Technically, there were no acquisition. Acquisition was concluded in August 2020. It was just integration. The acquisition was concluded when we acquired Qafco's 25% was done. This is only an operational integration. Here, this will bring some operational and financial synergies. This acquisition, if you recall, when we acquired Qafco's 25% in July, August 2020, along with that, Qafco acquired the 40% of QatarEnergy's share in Qatar Melamine Company. At that time itself, the shareholding in QMC was 100% owned by Qafco. Now what had happened, now the integration is completed. Meaning to say the operational integration now more or less is the management control, it's more or less fully operated by Qafco. That's what it's meant to say. Okay. Thank you. The last question is there any guidance you can give us on shutdowns across all your segments for the second half of the year? I have already answered for Alex Cromer's question. It's basically, in the second half of the year, there won't be any major shutdowns as we know. Unless otherwise we have any unplanned shutdown, which we cannot predict anything. The second half of the year expected to be stable at this moment of the time as we know. Great. Thank you very much. Thank you. As a brief reminder, that is star one for your questions today. We now move on to Dalal Darwich of Goldman Sachs with our next question. Please go ahead. Yes. Hi, everyone. Thank you for the presentation. This is Dalal from Goldman Sachs. I will be asking the questions on behalf of Faisal Mazman because he unfortunately could not attend the call. Just a couple of questions from our end. First, on dividends, it is increasingly the case that most companies in the region now have semi-annual dividend policies. The company has very strong cash position and limited CapEx requirements. So why not instate a semi-annual dividend policy in line with the peers in the region? That is the first one. The second one is on growth. How should we think about the potential opportunity for Qatar expanding gas production, and how can this impact IQCD? What are the likely areas of growth where potentially you might see, or you can see new allocations? Is it more on the fertilizer segment or on the steel segment? With valuations in the sector now coming off the recent highs, are you thinking about M&A? Mohammed, do you want to answer this question? Feel free. I'll fill in with the unanswered questions. Me? Yeah. To answer your question, we have a fairly large cash balance as you know that's a fact, only thing is you need to realize that we operate in a very cyclical business, right? As you see this year itself, beginning of the year, urea ammonia price was $1,000. Right now, it is between $500 to $600. We operate in a very cyclical business. We need to make sure that we reserve cash for a period where there are uncertainties involved. All the free cash that we generate, we cannot just pay based on the cash flow that is generated in that year, cannot be paid in that year itself. We accumulate cash to be paid during a year where the cash flow generations are lower. A good example would be the COVID year. What we do generally, you assess the current year under consideration together with next 5 years, which is our 5-year business plan. The board takes that into consideration when the dividend is paid. I think you were asking on the gas field expansion also. For that, I think that's completely out of our purview, and that is QatarEnergy is completely looking that separately. When it comes to dividend, we look at that year, looking at next 5 years. As I said, the industry which we work in is completely volatile, completely cyclical. We look at that year together with our CapEx forecast, which is also a function of so many other variables, including product prices and the feedstock availability on which we will make decisions. As I said, this year we might end up in a very strong free cash flow, but that doesn't mean that we will pay everything out as dividend, but because next five years could be anything, because we operate in a very cyclical business environment. Hope I have answered. Yes. Just maybe to fill in, just to clarify some of the answers related to dividends. This is a subject that is discussed in pretty much every earnings call and every investor meeting. Just to add on to what Safwan has mentioned around the cyclicality of the business and depending on what we see in the foreseeable future at the time of the declaration of the dividend are, I'd say, the two main drivers of what the absolute dividend distribution would be in any given year. Of course, add to that any exceptional CapEx programs that the group may have. That turns into maybe a few things that you've also asked about, one of which was would there be any investments, any projects, any M&A? There's expectation there are a few projects that could potentially be reaching FID towards the end or second part of this year. That, of course, if any projects are announced, would also have an impact on the free cash flow to be distributed. Got it. Thank you. Thank you. Once again, that is star one with your questions today. We now receive the question from Praek Pattanaga of HSBC. Please go ahead. Yeah. Hi, good afternoon. I could only join the call now, so I'm not sure if you've already covered this, but could you touch upon the progress on the Qafco 7 project? How is it coming along and how much is it tracking the CapEx, which you guided to? The second question is about the gas costs, right? We have seen gas costs globally increase. In U.A.E., they would increase by 2027. There were also reports that in Saudi it might happen. Are you having any kind of discussions with QatarEnergy? Obviously, they don't disclose the gas costs, but is there a discussion going on that it might happen in the future? Thanks. These are my two questions. In terms of Qafco 7, discussions are in progress. Shortly, an announcement will come on Qafco 7. With respect to the gas pricing, as you know, the contracts are always long-term. The supply is assured, as we always say. In terms of pricing, if I want to put it into a broader perspective, there are three basic elements to pricing. You have a base price on all contracts pretty much, and also we have an inflation element added to that. Every contract has an inflation element, which is based on a base year plus every year you add an inflation, which is pretty much indexed to the US CPI. The third element, which we call an escalator, which is a function of the end product price on which the segment is producing. For example, if it is fertilizer, it is urea. If it is petrochemicals, if it is LDPE, for example. We cannot give the nitty-gritty of those, but again, if you look at the EBITDA margins and if you look at the end product prices, you can work out some numbers. Unfortunately, because these are very confidential numbers between QatarEnergy Commercial and the joint venture entities, unfortunately, we cannot go back to details. Just to clarify one point, just to ensure there's no misinterpretations. What Safwan meant is that Qafco 7 FID is expected in the second half of the year. An announcement of whether the project is to go ahead or otherwise is expected to happen in the second half of this year. Thanks a lot. Moving apart from that, you'll still be interested in buying the remaining stake in Qapco and Qafco when the opportunity opens up in 2024 and 2029, right? We have the right of first refusal, right? Is that the correct word? That goes to the founder. The right of first refusal go to the founder, and at that point in time, we'll evaluate the opportunity, and obviously, if the opportunity is right for us, definitely, we'll consider that. Obviously, like what we did for Qafco's 25%, obviously, we'll look at the opportunity. Okay, thanks. Very helpful. Thank you. At the moment, we have no further questions. Yeah. Hi, this is Bobby Sarkar again. If we have no further questions, we can end the call today. I want to thank Mohammed, Safwan, Rashid, and Riaz for taking the time to answer our questions, and we will pick this up next quarter. Thank you very much. Thank you. Thank you for joining, everyone. Thank you. Thank you very much.