Hello. Welcome to the Industries Qatar conference call. Please note that this call is being recorded. You will have the opportunity to ask questions to our speakers later on during the Q&A session. If you'd like to ask a question by that time, please press star one on your telephone keypad. Thank you. I would like to hand the call over to Bobby. You may begin.
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. On this call from QatarEnergy's Privatized Companies Affairs, we have Abdulla Al-Hay, who is the Manager, Rashid Al -Mohannadi, who is the Head of IR and Communications, and Ahmad Salleh, who is Assistant Manager in Financial Operations. We will conduct this conference with the management first reviewing the company's results, followed by a Q&A. I would like to turn the call over to Rashid. Rashid, please go ahead.
Thank you, Bobby. Good afternoon. Thank you all for joining us. Hope you are doing great. Before we go into IQ business and performance updates, 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 number two of the IR deck. Kindly note that the MS Teams links 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. We can move to the call.
On Wednesday, 11th of February, IQ published its result for the year ended 31st December, 2025. 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 Companies Affairs, and Mr. Ahmad Zakri, Assistant Manager in the Financial Operation. We have structured our call as follow. First, I will provide you with a brief overview of IQ ownership structure, competitive advantages, and overall governance framework. Abdulla will walk you through the microeconomical update and overview of the consolidated result and the dividend proposal. Following that, Mr. Ahmad will present an update on the company financial performance. 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 number 5, IQ ownership structure comprises of QatarEnergy with 51% stake, and the rest is 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 strong business and financial position. QatarEnergy, being the main shareholder of IQ, provide 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 director along with senior management teams. In term of the competitive advantages, as detailed on slide number eight, 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, a sure 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, and non-JV partners. Most importantly, a well-experienced senior management team. As detailed on slide number ten, from competitive positioning perspective, IQ ranks among the top-tier companies within the regional downstream space across most of the matrices. In term of the IQ governance structure, you may refer to slide 47 or 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.
[Foreign language]. 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 returned as growth slowed, 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 margins 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 price eased and farmer affordability improved.
This was supported by lower gas price volatility, steady production, and adjusted trade routes 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 challenges for farmers amid ongoing 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 rates, and geopolitical tensions. In 2025, global demand and price stabilized, risk from trade barriers and geopolitics remained. Regionally, the steel market stabilized and then grew stronger, supported by large infrastructure and mega projects. Growth was further supported by normalizing oil production and rapid expansion in non-oil sectors. Regional supply moved towards self-sufficiency, with 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, despite ongoing funding requirements for current and future CapEx, as well as a 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 dividends for the year to QAR 4.3 billion or QAR 0.71 per share, representing 100% payout of the net earnings for the full-year, subject to the approval of the upcoming AGM. This proposed distribution underpins the board's strong confidence in the group's cash generation capability, financial strength, and commitment to delivering sustainable and attractive returns 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 $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.
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 cost 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 non-operating income in 2025. During the year, the group recorded total non-operating income of around QAR 0.9 billion, comprising interest and investment income of around QAR 500,000,000 , as well as other non-operating income of around QAR 0.4 billion.
This other non-operating 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 non-operating income reported in 2024 was QAR 1.7 billion, resulting in a notable reduction in 2025. 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. Let us move on to the segmental review. To start with, let's look at the petrochemical segment.
As detailed on slide 24, the petrochemical segment reported a net profit of QAR 733 million for the year, representing a 46% decline compared to last year. 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 additive 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 fertilizer 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.
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. 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 non-operating income. Revenue growth was supported by a 42% increase in sales volumes, reflecting the 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 non-operating 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. 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.
Thank you. We will now begin the question- and- answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. Thank you. Your first question comes from the line of Rabih Mous sa with QIC. Your line is now open.
Hi. Hi. Thank you for the call. A couple of questions from my side. The first one is related to plant turnarounds. Can you give us a color on your plant turnarounds for the full-year 2026? The second and third are related to the blue ammonia project. Can you confirm the timeline of completion of the project and what utilization rates do you expect from it? Plus the blue ammonia versus gray ammonia premium. Can you give us some color on that? The suspension PVC project, when do you expect that to be operational, and the utilization figures, please?
Yeah. Thank you for your question. For the turnaround, later on, Mr. Safwan will provide you with the plan for the year 2026. Related to your question of the blue ammonia project or the QAFCO-7 project, I would say that 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 a gray ammonia? This will be depending on the completion of the carbon capture first, which will not be completed this year. It is still under the construction. Basically, we will be starting this as a gray ammonia. Going forward, once the other facility will be ready, at that time, the market also will be much more looking for greener products, so we can start selling the blue ammonia at that time. For the PVC project, 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. Now Safwan can speak about the turnaround of 2026.
In 2026, the major turnaround will be within the fertilizer segment. There will be one planned turnaround within fertilizer. Because fertilizer facilities have 12 trains. Always every year we have one planned turnaround within them. This year also, as usual, we'll have one turnaround within one train, most likely to be QAFCO-2.
I don't want you to really worry about the turnaround. This is a routine thing happen for such kind of assets, where these turnarounds are designed to be conducted on, I believe, every five years for each plant. We shouldn't be worried. The production level will be the same. It's not going to massively impact the overall production. You don't need to worry about those things.
It's an idea to improve the reliability and maintain production.
Okay. Thank you. There will be only a turnaround in the fertilizer segment? There won't be any turnaround in the petchem segment?
Yeah, the planned turnaround only will be in petchem segment. Sorry, fertilizer segment.
Okay. Regarding the ammonia plant, the new ammonia plant. We can expect it to be completed by end of Q1 2026? What do you expect as a utilization rate for the plant for the rest of the year?
This production facility. We will start ramping up this production gradually until we arrive to 100% utilization. This facility or the QAFCO-7 should give us a 1.2 million metric ton per year. This is our target, and we usually achieve our target, I think.
How long does it take to fully ramp up the plant on average?
This is, I would say, maybe a technical question. As far as I know that it will start the production by the second quarter. As a normal, any facility, we cannot go to the full utilization from the beginning. This, I would say, we will achieve our full utilization during the year.
Okay. Thank you. That was very helpful.
Your next question comes from the line of Faisal Alazmeh with Goldman Sachs. Your line is now open.
Yes. Hi, thanks for the opportunity to ask questions. I have a few, if you don't mind, I'll ask them one by one. Obviously, we've noticed that this quarter you've started taking a new provision for decommissioning of certain assets. You have a QAR 46.7 or 8 million charge that is allocated to the depreciation and amortization. Then there's also another charge allocated on the financial cost of around QAR 30 million. Just to reconcile some numbers. Is this just at the fertilizer level, and is this just for the quarter, or 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.
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. We have started to book the provision during the Q4 of 2025. The number that you have, that is for one quarter, which is the fourth quarter, where you need to annualize that number. We are implementing these decommissioning provision on the fertilizer plus the petchem assets as well.
There should be an additional charge as well hidden in the associate or the JV or income from JV line. Right? Technically, you have one that is consolidated and another one that we do not see. Is that correct?
Correct. Yeah.
Okay. Just roughly, if we combine all of that together, it's approximately around QAR 400 million a year of extra provisioning. Is that the right figure?
I have my colleague, Ahmad, here.
Yeah.
He's saying this is approximate number.
Yeah. It is an approximation, I would caution you as well, because when you try to annualize the number, because there are many variables that go into the calculation of that provision for decommissioning. Some of these variables can change from one year to the next. The provisioning number and the annual impact is highly sensitive to some of these assumptions and variables. While you can annualize the expected impact for next year, you have to take it cautiously in a sense, if there is 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. Just bear that in mind when you do your analysis and estimates for 2026.
Obviously, this is a non-cash expense, it does not impact your free cash flow generation in any way. Will it impact the dividend distribution potential of the business? If you are at 100% of EPS and your EPS, if let us say, you realize the same level of profitability this year versus last year, you have an additional QAR 300 million of expenses, obviously, you have had the QAR 100 million in Q4, would that result in a lower dividend? 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 non-cash item, at a certain point of time, while 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 toward that asset. At the end, this cash will be required. Going back to your question related to the dividends, maybe you need to see the historical behavior of Industries Qatar. In that historical behavior, we have not seen that the dividend was more than the earning.
Okay.
God knows, maybe in the future, if any strategical decision been there to pay more than the earning, maybe it will also be announced or a decision to be taken in the future in case that the strategy have been changed. However, if you go to the trend, you can see it in the screen that we always pay below the, or 100% of the earning.
100%.
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 five years. This is effectively across all assets, right? This is not from an IFRS reporting standpoint. How should we think about?
Yes.
How should we think about how much is allocated to the consolidated business from the 10.5?
What do you mean? This is the entire?
If we're trying to estimate how much free cash flow from an IFRS reporting standpoint is that, what should we take into consideration? What is allocated for QAFAC and QAFCO at this stage of the QAR 10.5 billion?
This is for all segments, regardless how the accounting 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. 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 just know if you have the-
On a percentage basis, 80% goes into QAFCO.
QAFCO.
Yes.
QAFCO, okay. Very clear. Thank you.
Your next question comes from the line of Nikhil Phuthane with CBFS. Your line is now open.
Thank you, gentlemen, for taking my call. 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. I wanted to have some color on this. What has been the reason behind it during the fourth quarter? Yeah.
Can you repeat the question? Do you mean increase or decrease?
There has been a decrease in volume in your DRI, HBI facility on QoQ basis. Can we know what is the reason behind it?
If you look at slide number 39, if you look at DRI, HBI, fourth quarter is around 255,000 metric tons, right? Sales.
Right.
That's a drop from 314,000 from the previous quarter, right? That's your question, right? The drop.
Yeah. 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. Third quarter and fourth quarter, we are seeing a drop. As compared to what we were previously assuming, and in the year beginning, which you mentioned that you'll be focusing more on this. Wanted to understand what is going on there in terms of volumes. How we look forward in, say, first quarter, second quarter of 2026.
This depends 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 rebar, or to sell it as DRI and HBI. What you need to focus on that this year we have restarted our mothballed facility, and we have increased our production. This gives the investor that there is some market for the semi-final 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. The allocation is basically based on the market demand.
Yep. Okay. Okay, sir. Understandable. Okay, just in a general question point of view, the physical market in your petchem segment, we are seeing it quite weak. We have seen the trend also over the last few quarters. Given the fact that I believe further capacity additions could be coming up, especially in Asia region, over the next few years. Wanted to have an understanding about how you look forward in the first half of 2026 for petchems.
Petrochemical market is under pressure due to the excess supply and 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 with 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 term of the margin, whatever, you will see that you are still performing due to all the assets being in Qatar. Other players, maybe they have assets in different regions where their margin really got impacted more than us.
I would say we will be doing inshallah great even if the prices are under pressure.
Okay. Understandable again on this. Just to look something like an auxiliary offshoot, you mentioned about QAFCO-7, your blue ammonia project. You mentioned about first quarter likely starting and all that. I wanted to have an understanding about can you give us some guidance on the revenue and EBITDA levels, say, for example, for 2026? What we can expect.
This basically can be tracked by the other facility or by the other product that we are producing from different plants. We have overall a 60 range. Our margin stood at around maybe 35%. What is our margin today? Around 34%, 35% or 40% here.
It's for the quarter.
From the fourth quarter. I would assume this is a newer facility. It should have also better efficiencies. Let's hope that we maintain either the same or the above margins.
Okay. Thank you.
Thanks a lot.
Your next question comes from the line of Kushal A. with Decimal Point Analytics. Your line is now open.
Yeah. Thank you for the opportunity. Just a quick follow-up on the suspension PVC project. Could you guide on what is the utilization levels for the project upcoming time? What type of progress are you currently seeing for the PVC? The second one is regarding the steel market, how do you see the supply-demand dynamics and price going forward for medium-term? Thank you.
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 products locally. Our plan is to go with the full utilization during the year 2026. This unit should give us around 350,000 tons per year. We will be reporting the performance of this PVC, inshallah, during the year. Regarding the steel market, I would say that the regional market is having activities. We see that there is activity in Saudi Arabia. There is a huge project going on in the United Arab Emirates, as well as our local project. We are 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. We see that the business will continue during the 2026.
Okay. Thank you. Just a quick follow-up. What are the current pricing dynamics you are seeing in the 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 the PVC market. We will be also looking at 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. These things are yet to be disclosed. We'll be disclosing more information when we have more clarity on the PVC.
Thank you, gentlemen.
Thank you.
Your next question comes from the line of Amir Badran with NBK. Your line is now open.
Thank you so much for taking my question. 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? Thank you.
Yes, thank you so much. I think this is very important question, and on every earning call, we receive the same questions. We have the formula for the feedstock, which is pretty much linked to the final product prices. 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 the flexibility, which give us even to maintain, I would say, a good EBITDA and good margins during the year.
Just maybe one follow-up in the fertilizer segment. For 1Q 2026, we should look at 2025 full-year average prices, or how does it work?
It's getting what you call readjusted at the beginning of the year. Every year it will get refixed. For 2026, it will be adjusted back.
I'm sorry, what do you mean by adjusted back? Goes back to the base? How does it work, basically?
For the 2026, it will get adjusted again. Every year, you will get rebased it. 2025, it will be based on 2025 prices, and 2026 based on 2026 prices, and on a year-to-date basis.
Okay. We'll start basically rebasing based on the Jan, Feb, March prices, basically. This will be the average for 1Q.
Exactly.
Okay, great. Thank you so much.
Your last question comes from the line of Rabih Moussa with QIC. Your line is now open.
Hi. Yeah, just a quick follow-up on the CapEx. I want to just get clarification. This QAR 10.5 billion figure is IQ's share of CapEx, correct?
Yes.
Okay. Thank you. Thank you so much.
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 Safwan, 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.