Industries Qatar Q.P.S.C. (IQCD) Q4 FY2025 Earnings Call Transcript & Summary

Hello, and welcome to the Industries Qatar Conference Call. Please note that this call is being recorded. [Operator Instructions] Now I would like to hand the call over to Bobby. You may begin.

Okay. Thank you, Angela. Hi. Hello, everyone. This is Bobby Sarkar, Head of Research at QNB Financial Services. I wanted to welcome everyone to Industries Qatar's Fourth Quarter and Year-end 2025 Financial Results Conference Call. So on this call from QatarEnergy's Privatized Affairs Group, we have Abdulla Al-Hay, who is the Manager; Rashid Al-Mohannadi, who is the Head of IR and Communications; and Ahmad Md Salleh, who is the Assistant Manager in Financial Operations. So we will conduct this conference with the management first reviewing the company's results followed by a Q&A. I would now like to turn the call over to Rashid. Rashid, please go ahead.

Thank you, Bobby. Good afternoon, and thank you all for joining us. Hope you are doing great. Before we go to IQ business and performance update, I would like to mention that this call is purely for IQ investors, and no media representatives should be attending this call. Moreover, please note that this call is subject to the disclaimer statement as detailed on Slide #2 of the IR deck. Kindly note that the MS Team link is to display the IR deck on screen. In case you want to participate in the Q&A session, you must dial in through the telephone lines on the phone number provided as part of the invitation. Now we can move to the call. On Wednesday, 11th of February, IQ published its results for the year ended 31st December 2025. And today, in this call, we'll go through these results and provide you with an update on key financial and operational highlights. Today in this call, along with me, I have Mr. Abdulla Yaqoob Al-Hay, Manager for Privatized Company Affairs; and Mr. Ahmad Zakri, Assistant Manager in the Financial Operations. We have structured our call as follows: First, I will provide you with a brief overview of IQ ownership structure, competitive advantages and overall governance framework. Then Abdulla will walk you through the macroeconomical update and overview of the consolidated results and the dividend proposal. Following that, Mr. Ahmad will present an update on the company financial performance. And later on, Ahmad will guide you through the segmental performance. Finally, we'll open the floor for the Q&A. To start with, as detailed on Slide #5, IQ ownership structure compromises of QatarEnergy with 51% stake and interested in free float held by various domestic and international corporates and individuals. Rating agencies such as S&P reaffirmed IQ issuer credit rating at AA- with stable outlook and confirming IQ Group's strong business and financial position. QatarEnergy being the main shareholder of IQ, provides most of the head office functions through a service level agreement. Operations of the IQ Group companies are independently managed by their respective Board of Directors, along with senior management teams. In terms of the competitive advantages, as detailed on Slide #8, the group is well positioned with several competitive advantages within its domain strategically, operationally as well as financially. These strengths include an efficient and well-maintained asset base, a qualified skilled and highly trained workforce, assured supply of feedstock and competitively priced energy sources, lower operating cost, a dedicated marketing team in the form of QatarEnergy Marketing to market the group Petrochemical and Fertilizer product, [indiscernible] and known JV partners and most importantly, a well-experienced senior management team. As detailed on Slide #10 from competitive positioning perspective, IQ ranks among the top-tier companies within the regional downstream space across most of the matrices. In terms of the IQ governance structure, you may refer to Slide 47 and 48 of the IR deck, which covers various aspects of IQ code of corporate governance in further detail. With that, I will now hand over to Mr. Abdulla.

Thank you, Rashid, and thank you all for joining us. We will start with a brief overview of the macroeconomic environment. After several years of uncertainties driven by high energy prices and geopolitical risks, global conditions improved in 2024, supported by lower inflation and modest growth. In 2025 uncertainty retained as growth slowed, the trade tension increased and economic risk rose across most regions. Moving on the Petrochemical sector. In 2025, the Petrochemical industry operated in difficult global environment affected by trade tension, geopolitical risk and volatile energy markets. These factors impacted demand supply chains and prices, while margin remained under pressure. Despite these challenges, the industry achieved modest growth supported by steady demand from packaging, automotive, construction and consumer goods sectors. Turning to Fertilizer. The nitrogen fertilizer market stabilized in 2024 as the price eased and farmer affordability improved. This was supported by lower gas price volatility, steady production and adjusted trade growth despite sanctions in 2025, conditions tightened again due to the strong demand, supply limits and export controls, especially from major exporters. Price rose sharply, creating renewed affordability challenging for farmers aimed on going global food security concerns. As for the Steel sector, the Steel segment declined in 2024 due to weak demand from construction and automotive sectors, along with higher operating costs. The year was also affected by inflation, high interest rate and geopolitical tension. And in 2025, global demand and price stabilized, but risk from trade barrier and geopolitic remained. Regionally, the Steel market stabilized and then grow stronger, supported by large infrastructure and mega projects. Growth was further supported by normalizing oil production and rapid expansion in non-oil sector. Regional supply moved towards self-sufficiencies with the plans for further export growth. Now looking at our financial performance. The group reported a net profit of QAR 4.3 billion, equivalent to QAR 0.71 per share for the year ended 31st December 2025, representing an 8% decline compared to the restated figure in the previous year. While net profit and earnings per share declined, the EBITDA remained broadly stable, supported by marginal stronger operating performance and resilient underlying profitability. Turning to dividends and despite ongoing funding requirement for current and the future capital projects, as well as cautious short- and medium-term macroeconomic outlook, the Board of Directors has proposed a generous second half 2025 dividend of QAR 2.7 billion, equivalent to QAR 0.45 per share. This brings the total dividend for the year to QAR 4.3 billion or QAR 0.71 per share, representing a 100% payout of the net earnings for the full year, subject to the approval of the upcoming AGM. This proposed distribution and Directors of the Board's strong confidence in the group cash generation capability, financial strength and commitment to delivering sustainable and attractive return to shareholders. With that, I will now hand over to Mr. Ahmad, who will walk you through the financial and operational update for the year.

Thank you, Mr. Abdulla. Good afternoon, everyone, and thank you for attending this earnings call. Diving into the financial performance as reported on Slide 15, IQ Group reported a consolidated net profit of QAR 4.3 billion for the year ended 31st December 2025, a decline of 8% versus restated 2024 results. Earnings per share for 2025 was QAR 0.71 versus QAR 0.77 for 2024. EBITDA for the year was QAR 6.4 billion with an EBITDA margin of 34% compared to an EBITDA of QAR 6.4 billion for prior year with an EBITDA margin of 38%. Group revenue for 2025 increased by 11% to reach QAR 18.6 billion as compared to QAR 16.8 billion in prior year. Improvement in revenue for the year was due to an overall increase in both average selling prices as well as sales volumes. Going through IQ's net earnings for 2025 versus 2024 as detailed on Slide 16, the group's financial performance for 2025 was largely attributable to the following factors: Blended product prices rose 4% year-on-year to USD 477 per metric ton, contributing around QAR 542 million increase to net earnings. Fertilizer prices remained resilient, supported by strong agriculture demand, supply disruptions and export controls. Petrochemical demand remained weak due to overcapacity. Steel demand was mixed with strength in India, Asia, excluding China and the Gulf region, while China demand remained weak. Moving on to sales volumes. Sales volumes for the year ended December 2025 increased by 6%, contributing QAR 1.3 billion improvement to net earnings. This increase was driven by higher production, primarily coming from the Steel segment and stable demand amid easing macroeconomic pressures. Our continued supply constraints, including export restrictions by major producers further supported volumes, enabling the group to capitalize on favorable market conditions. Operating costs for 2025 increased moderately versus prior year. This year-on-year increase in operating costs was driven by a few factors, namely higher sales volumes, increased feedstock costs, which were linked to average product prices, recognition of site restoration and decommissioning costs, coupled with general inflation. The financial performance for the year was also impacted due to lower one-off nonoperating income in 2025. During the year, the group recorded total nonoperating income of around QAR 0.9 billion, comprising interest and investment income of around QAR 0.5 billion as well as other nonoperating income of around QAR 0.4 billion. Now this other nonoperating income includes a QAR 222 million relating to reversal of impairment of facilities, which were previously mothballed within the Steel segment. On a comparable basis, total other nonoperating income reported in 2024 was QAR 1.7 billion, resulting in a notable reduction in 2025. Now this lower -- this reduction was due to lower interest and investment income on account of lower availability of investment funds, coupled with lower interest rates. In addition, the group also recognized around QAR 0.4 billion gain on acquisition of a subsidiary during the year ended 2024. Moving on to the financial position of the group. As you can see on Slide 15, IQ Group's financial position remains robust with proportionately accounted cash and bank balances of QAR 10.3 billion as of 31st December 2025 after payment of dividends relating to second half of 2024 and first half of 2025, amounting to QAR 2.6 billion and QAR 1.6 billion, respectively. Currently, the group has no short-term or long-term debt obligations. The group's reported total assets and total group equity reached QAR 43.1 billion and QAR 37.9 billion, respectively, as of 31st December 2025. The group also generated positive operating cash flows of around QAR 4.9 billion and free cash flow of around QAR 2.6 billion. Now let us move on to the segmental review. To start with, let's look at the Petrochemicals segment. As detailed on Slide 24, the Petrochemicals segment reported a net profit of QAR 733 million for the year, representing a 46% decline compared to last year. Now this decrease was mainly driven by lower revenue by around 11% and a reduction in operating margins influenced by an increase in operating costs. Revenue declined due to a 5% drop in sales volumes and a 6% decrease in average selling prices. Both were impacted by a mix of internal and external challenges. Selling prices were lower compared to last year, mainly due to macroeconomic headwinds, including weaker demand, oversupply from excess capacity and cautious buying behavior, geopolitical tensions and crude price volatility. Additionally, volumes were affected by higher shutdown days within both the Polyethylene and Fuel Additives segments. On a quarter-on-quarter basis, net earnings declined sharply by 92%, primarily due to margin pressure arising from lower revenue and significantly higher operating costs. Revenue decreased by 6%, reflecting the combined impact of a 5% decline in prices and a 2% reduction in sales volumes. Operating costs rose sharply, mainly due to inventory movements, higher maintenance expenses, coupled with the recognition of site restoration and decommissioning costs in the fourth quarter of 2025, which materially impacted our operating margins. Sales volumes declined marginally amid lower production, while prices remained subdued against ongoing macroeconomic headwinds. Moving on to Fertilizers segment. As you can see on Slide 30, this segment delivered a robust net profit of around QAR 2.7 billion for the year, representing a strong 36% increase year-on-year. Now this improvement was primarily driven by an 18% increase in revenue, underpinned by a notable 20% rise in average selling prices, which more than offset a marginal 2% decline in sales volumes. Nitrogen fertilizer prices improved significantly on a year-on-year basis, supported by both demand and supply side factors. On the demand side, consumption continued to strengthen and stabilize driven by rising global food demand, expansion of arable land, improving farmer affordability and profitability and producers access to more reliable feedstock supply chains. On the supply side, availability remained constrained due to tighter exports from key producers such as China, alongside export restrictions from countries, including Russia and Belarus. Sales volumes declined marginally in line with marginally lower production volume during the year. On a quarter-on-quarter basis, the segment's net profit declined notably down to QAR 533 million, primarily due to pressure on operating margins stemming from lower revenues and higher operating costs. Segment revenue declined moderately compared to third quarter of 2025, mainly driven by a sharp 13% decline in average nitrogen fertilizer prices during the quarter. Our prices came under pressure due to seasonal demand weakness, lower natural gas feedstock costs, increased ammonia supply, elevated inventory levels and weaker farmer purchasing power, all of which exerted downward pressure on prices. Sales volume, however, increased marginally by 5%, supported by underlying demand-supply fundamentals. Operating costs increased notably compared to the previous quarter, reflecting higher sales volumes as well as the recognition of site restoration costs in fourth quarter of 2025, which further impacted margins. Moving on to the Steel segment. As shown on Slide #36, the Steel segment reported a net profit of QAR 713 million, significantly higher than 2024. This was mainly driven by a 29% increase in revenue, stronger operating margins and higher other operating and nonoperating income. Revenue growth was supported by a 42% increase in sales volumes, reflecting a 26% higher production following facility restarts despite a 9% decline in average selling prices amid softer global steel prices. The performance of the segment was further supported by a one-off impairment reversal of QAR 222 million, which was partially offset by weaker contributions from associates. On a quarter-on-quarter basis, net profit improved significantly by 360% compared to the previous quarter, mainly driven by the recognition of one-off nonoperating income relating to the reversal of impairment on property, plant and equipment as well as stronger operating margins supported by improved product prices. Segment revenue increased by 6%, primarily reflecting a 10% improvement in average selling prices, supported by supply constraints, strong demand from both the infrastructure and automotive sectors as well as improving mill margins despite a 3% decline in sales volumes. Now with that, I will hand over back to Rashid. Over to you, Rashid.

Thank you for your attention. That concludes our presentation. We will now open the floor for the Q&A.

[Operator Instructions] And your first question comes from the line of Ravi [ Musa ] with QIC.

A couple of questions from my side. The first one is related to planned turnarounds. Can you give us a color on your planned turnarounds for the full year 2026? The second and third are related to the blue ammonia project. Can you confirm the time line of completion of the project? And what utilization rates do you expect from it? Plus the blue ammonia versus grey ammonia premium. Can you give us some color on that? And the suspension PVC project, when do you expect that to be operational and the utilization figures, please?

Thank you for your question. For the turnaround, later on, Mr. Saffan will provide you with the plan for the year 2026. Related to the -- your question of the blue ammonia project or the QAFCO-7 project, I would say that we have -- we will be arriving to the completion of this project during the first quarter of 2026. Are we going to produce a blue ammonia or grey ammonia? This will be depending on the completion of the carbon capture facility, which will not be completed this year. It is still under the construction. So basically, we will be starting this as a grey ammonia, but going forward, once the other facility will be ready, then at that time, the market also will be much more looking for greener product, so we can start selling the blue ammonia at that time. For the PVC projects, the facility already in operation, we managed to sell some of the product during the month of December 2025. We should see the full production of that and utilization of this facility during the 2026. So now Saffan can speak about their turnaround of 2026.

So in 2026, the major turnaround will be within the Fertilizer segment. There will be [indiscernible] and turnaround within Fertilizer because always -- because Fertilizer facilities have 12 trains. So always every year, we have one planned turnaround within them. So this year also, as usual, we'll have turnaround within train, most likely to be QAFCO-2.

I don't want you to really worry about the turnaround. This is a routine things happen for such kind of assets, where these turnarounds are designed to be conducted on, I believe, every 5 years for each plant. So we shouldn't be worried the production level will be the same. It's not going to massively impact the overall production. So you don't need to worry about.

Idea to improve the reliability and production.

Yes. So there will be only a turnaround in the Fertilizer segment. There won't be any turnaround in the Petchem segment?

Yes, the planned turnaround only will be in Petchem segment -- sorry, Fertilizer segment.

Okay. And regarding the ammonia plant, the new ammonia plant, so we can expect it to be completed in -- by end of Q1 2026. And what do you expect as a utilization rate for the plant for the rest of the year?

We will add to the production facility. So we will start ramping up this production gradually until we arrive to 100% utilization. This facility for the QAFCO-7 should give us a 1.2 million metric tons per year. So -- and this is our target, and we usually achieve our target as well.

And how long does it take to fully ramp up the plant on average?

This is, I would say, maybe a technical question. But as far as I know that it will stop the production by the second quarter. And as a normal -- any facility, we cannot go to the full utilization from the beginning. But this, I would say, we will achieve our full utilization during the year.

Your next question comes from the line of Faisal Azmeh with Goldman Sachs.

So I have a few. So if you don't mind, I'll ask them one by one. Just in terms of -- obviously, we've noticed that this quarter, you've started taking a new provision for decommissioning of certain assets. You have a [ 46.7 million or 8 million ] charge on the -- that is allocated to the depreciation and amortization. And then there's also another charge allocated on the financial cost of around QAR 30 million. So just to kind of reconcile some of these numbers, is this just at the Fertilizer level? And is this just for the quarter? So should we annualize this figure going forward, whereby you have an extra expense of around, call it, QAR 80 million per quarter that didn't exist in the past? That's my first question.

Yes. Thank you for your question. I believe we have started to do the, I would say, the good practice by putting the provision for the decommissioning for the huge assets that we have and the aged assets as well. So we have started to book the provision during the Q4 of 2025. So the number that you have, it is for 1 quarter, which is the fourth quarter where you need to annualize that number. We are implementing this decommissioning provision on the Fertilizer plus the Petchem assets as well.

So there should be an additional charge as well hidden in the associate or the JV or income from JV line, right? So technically, you have -- so you have one that is consolidated and another one that we do not see. Is that correct?

Correct. Yes.

Okay. And just roughly, if we kind of combine all of that together, it's approximately around QAR 400 million a year, right, of extra provisioning. Is that the right figure?

I have my colleague, Ahmad here. He's saying this is approximate number.

Yes, it's an approximation. And I would caution you as well because when you try to annualize the number, because there are many, many variables that go into the calculation of that provision for decommissioning -- and some of these variables can change from 1 year to the next. And the provisioning number and the annual impact is highly sensitive to some of these assumptions and variables. So while you can annualize the expected impact for next year, you have to take it cautiously in a sense, if there's a change in any of the assumptions with regards to inflation rate or discount factor as well as the timing of the decommissioning activity, which are highly uncertain, then that number in 2026 will move, will change. So just bear that in mind when you do your analysis and estimates for 2026.

And obviously, this is a noncash expense. So it does not impact your free cash flow generation in any way, but will it impact the dividend distribution potential of the business? Because if you are at 100% of EPS and your EPS -- so if, let's say, you realize the same level of profitability this year versus last year and you have an additional QAR 300 million of expenses, obviously, you've had the QAR 100 million in Q4. Would that result in a lower dividend? Or will the firm or will the company look at dividend distribution going forward on a free cash flow basis rather than on an EPS basis?

I agree with you, it is a noncash item. But at a certain point of time, while we are moving forward, you will be at a certain time, God knows, after 15, 20 years, 30 years, you decommission some of the assets or you put more CapEx towards that asset. So at the end, this cash will be required. So -- going back to your question related to the dividends, maybe you need to see the historical behavior of Industries Qatar. And in that historical behavior, we have not seen that the dividend was more than the earnings. God knows maybe in the future, if any strategical decision been there to pay more than the earnings, maybe it will also be announced or a decision to be taken in the future in case that the strategy has been changed. However, if you go to the front, you can see it on the screen that we always pay below the 100% of the earnings.

Maybe just a last question, sorry, I've asked a few. Just on the CapEx guidance that you've provided of QAR 10.5 billion over the next 5 years. So this is not -- this is effectively across all assets, right? So this is not on -- from an IFRS reporting standpoint. What -- how should we think about...

Yes.

So how should we think about how much is allocated to the consolidated business from the QAR 10.5 billion?

So what do you mean by -- this is...

If we're taking -- this is the entire, but I mean, if we're looking -- if we're trying to estimate how much free cash flow at the -- from an IFRS reporting standpoint is that, what should we take into consider -- so what is allocated for QAFAC and QAFCO at this stage relative to the point...

This is for all segments regardless how the accounting has been done proportionate. This is basically proportionate to all of the CapEx and the Petrochemical, Fertilizer and the Steel segments, regardless how we account for it.

Perfect. And would it be possible to maybe give us the carve-out in terms of what's for QAFAC and QAFCO from the QAR 10.5 billion?

I don't know, if we have the...

On a percentage basis, 80% goes into QAFCO.

QAFCO. Okay.

Your next question comes from the line of [ Nikhil Phutane ] with CBFS.

My call actually is pertaining to Steel division. It looks like overall revenues has got affected due to some marked decrease in volumes in your DRI/HBI facility. So I wanted to have some color on this. So what has been the reason behind it during the fourth quarter?

Can you repeat the question -- do you mean increase or decrease?

There has been a decrease in volume in your DRI/HBI facility on Q-o-Q basis. So can we know what is the reason behind it?

If you look at Slide #39, if you look at DRI/HBI, fourth quarter is around 255,000 metric tons, right? It actually dropped from 314,000 from the previous quarter, right? That's your question, right? The drop.

Yes. I mean, for example, second quarter was abnormally high, which we can understand. You mentioned about sales of semi-finished goods, which drove the sales in second quarter. But then third quarter and fourth quarter, we are seeing a drop. I mean, as compared to what we were previously assuming in the year beginning, which you mentioned that you'll be focusing more on this. So I wanted to understand what is going on there in terms of volumes and how we look forward in, say, first quarter, second quarter of 2026?

This is depend on the orders that we receive either to take the decision to take the DRI/HBI into the next step and convert it to the [ rear ] or to sell it as DRI and HBI. What you need to focus on that this year, we have restarted our mothball facility, and we have increased our production. This is -- this give the investors that there is some market for the semifinal product, where we can see that we can sell in the region. Also, there is a market for the final product that we are selling locally in Qatar and even in the region. So the allocation is basically based on the market demand.

Okay, sir. I mean, understandable. Okay. I mean just in a general question point of view, I mean, the physical market in your petchem segment, we are seeing it quite weak, and we have seen the trend also over the last few quarters. So -- and given the fact that I believe further capacity additions could be coming up, especially in Asia region over the next few years. So I wanted to have an understanding about how you look forward in the first half of 2026 for petchems?

Petrochemical market that is under pressure due to the excess supply and the -- plus the lower demand, lower activities impacted by many regions. A lot of factors, if you look at the regional political situation right now, there are a lot of uncertainty there. I would say we need to focus on our excellence in the operation. Final product prices will be driven by the entire market. We need to target the best market, I would say, to get to the best return on our Petrochemical segment. What you will note that we will be performing better than others. If you are doing any kind of comparison in terms of the -- I would say, in terms of the margin, whatever, you will see that you are still performing due to the assets being -- all the assets being in Qatar. Other players, maybe they have assets in different, I would say, regions where their margin really got impacted more than us. So I would say we will be doing [Foreign Language] great even if the prices are under pressure.

Okay. Okay. Understandable again on this. But I mean, just to look something like on a positive offshoot, you mentioned about QAFCO-7, your blue ammonia project, and you mentioned about first quarter likely starting and all that. So I wanted to have an understanding about -- can you give us some guidance on the revenue and EBITDA levels, say, for example, for 2026? I mean what we can expect?

This is basically it can be tracked by the other facility or by the other products that we are producing. [indiscernible] We have over 60 trains, our margin stood at around maybe 35%, what is our margin to around 34%, 35% or 40% here. So from the fourth quarter. I would assume this is a newer facility, should have also better efficiencies. Let's hope that we maintain either the same or the above...

Your next question comes from the line of Kushal A with Decimal Point Analytics.

Just a quick follow-up on the suspension PVC project. So could you guide on the -- what is the utilization level for the [indiscernible] upcoming time? And what are the projects are you currently seeing for the PVC? And the second one is regarding the Steel market. How do you see the supply-demand dynamics and price going forward for medium term?

So the first question, I believe, related to the PVC utilization. If I'm correct, we have highlighted before that we started the production of the PVC in the month of December. We sold all the product locally. Our plan is to go with the full utilization during the year 2026. We have -- this unit should give us around [ 350,000 ] ton per year. So we will be reporting the performance of this PVC sold during the year. Regarding the Steel market, I would say that the market -- the regional market is having activities. We see that there is activity in the Saudi Arabia. There is a huge projects going on in the United Arab Emirates as well as our local projects. So we have been able to sell all of our products. We've been able to generate profit for the Steel during the year, which is a very difficult business, I would say. So we see that business will continue during the 2026.

Okay. Just a quick follow-up. What are the current pricing dynamics you are seeing in the market -- PVC market?

Pricing dynamics PVC. Pricing dynamics, to be honest, maybe you need to look at the VCM market where the PVC is, I would say, having the same trend of the PVC market. I would say this is a new product for us. We will be looking and monitoring that PVC market. We will see -- we will be also looking at which -- who is our, I would say, consumer of the PVC. Is it going to be consumed locally, regionally or we will go to other continents in Europe or Asia. So these things are yet to be disclosed. We'll be disclosing more information when we have more clarity on the PVC.

Your next question comes from the line of Amir Badran with NBK.

Could the management please remind us of the feedstock pricing agreement and whether it's linked to product prices average over the last 12 months?

Yes. Thank you so much. I think this is a very important question. And on every earnings call, we received the same questions. We have the formula for the feedstock, which is pretty much linked to the final product prices. So in the Fertilizer segment, it will be linked to the full year, I would say, average of the product price. However, in the Petrochemical segment, it's restated on a monthly basis. We see this formula as a dynamic formula, which give us that flexibility, which give us even to maintain, I would say, a good EBITDA and good margins during the year.

So just maybe one follow-up on the -- in the Fertilizer segment. So for 1Q 2026, we should look at 2025 full year average prices? Or how does it work?

It's getting what we call readjusted at the beginning of the year. So every year, it will get refixed. So 2026, it will be adjusted back.

I'm sorry, what do you mean by adjusted that goes back to the base? So how does it work basically?

So 2026, it will get adjusted again. So every year, so you have -- you will get rebased it. So 2025, you have -- it will be relatively based on 2025 prices and 2026 based on 2026 prices and on a year-to-date basis.

Okay. So we'll start basically rebasing based on the Jan, Feb, March prices basically. This will be the average for 1Q.

Exactly.

Your last question comes from the line of Ravi [ Musa ] with QIC.

Just a quick follow-up on the CapEx. I want to just get a clarification. So this QAR 10.5 billion figure is IQCD's share of CapEx, correct?

Yes.

There are no further questions. I will now turn the call back over to Bobby for closing remarks.

Okay. Thank you, Angela. If there are no further questions, I would like to thank management Abdulla, Rashid, Ahmad and Saffan for taking the time to answer our questions, and we will pick this up again next quarter. Thanks, everyone.

Thank you.

Thank you.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.