Petrochemicals and metals company Industries Qatar (IQ) blamed weaker commodity prices, new regional capacity and a decline in US demand through 2009 after posting fourth quarter net profit below analysts’ estimates.

The company recorded a net profit of QR1.07 billion ($293 million) for the final three months.

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

Full-year net profit came in at QR4.9 billion, the company said, down 33 per cent from QR7.28 billion in 2008, due mainly to falling prices of polyethylene, urea and steel bars.

“We are somewhat surprised by Industries Qatar’s relatively low earnings, as the fertiliser division did reasonably well in Q4 09 compared to Q3 09, and most petrochemical average prices were up in Q4 09 versus Q3 09,” said Laurent-Patrick Gally of Dubai-based investment bank Shuaa Capital.

On the back of the news, Gally lowered his 2010 earnings forecast for IQ to QR4.5 billion from QR5.5 billion.