29 May 2016
DOHA: Forty percent of the GCC listed companies reported profits higher than analysts' estimates in 1Q16. The aggregate profits of 149 companies, according to the list compiled by SICO Investment Bank, reached $12.6bn beating consensus median by three percent during the first quarter. Qatar listed companies' aggregate profit reached QR7.7bn; beating estimates by 4 percent YoY. Earnings improved YoY due to Ooredoo's strong earnings; the telco posted QR879m; up 75 percent YoY, outperforming around QR453m estimated by consensus led by forex gains. Adding to that, QIB reported better than expected net profit at QR492m, up23 percent YoY, on the back 38 percent higher net interest income YoY. QNB's 1Q16 net income of QR2.8bn in 1Q16 up 7 percent YoY, in line with consensus' median, because of a pickup in trading gains and lower provisioning charges in 1Q16.
The SICO analysts who covered Qatar's 17 listed companies, including eight banks and two telecom companies, noted 47 percent of the companies in Qatar met estimates while 35 percent were better.
Sixty-four percent of real estate & construction companies in the region reported higher than expected in 1Q16. On the other hand, Consumers reported 48 percent lower than estimated results YoY; Saudi discretionary consumer companies reported lower sales coming from a higher base last year, as a result of the two month bonus.
Also Saudi consumers were also hit by higher tariffs and those with operations in Egypt were hit by currency devaluation. Petrochemical companies' aggregate earnings were 47 percent higher than expected. Also, 46 percent of GCC telecom companies reported above estimated earnings.
Overall, GCC companies reported a 9 percent YoY decline in earnings, with all countries' aggregate earnings, except Oman (up14 percent YoY), decreasing on a YoY basis. Ooredoo Oman's earnings increased by 18 percent YoY reaching OMR 12.6m while Raysut Cement reported 1Q16 net profit of OMR 8.1m up 34 percent YoY.
GCC Banks' overall profits decreased by 1 percent YoY. NBK declined 18 percent YoY from $344mn to $ 281mn in 1Q16; down 18 percent YoY, due to absence of one-off gain from an asset sale which positively impacted 1Q15 earnings. CBQ posted weak bottom line at $79m, down 36 percent YoY, coming from marginally lower net interest income and fee income YoY along with higher operating expenses and provisioning charges YoY.
DOHA: Forty percent of the GCC listed companies reported profits higher than analysts' estimates in 1Q16. The aggregate profits of 149 companies, according to the list compiled by SICO Investment Bank, reached $12.6bn beating consensus median by three percent during the first quarter. Qatar listed companies' aggregate profit reached QR7.7bn; beating estimates by 4 percent YoY. Earnings improved YoY due to Ooredoo's strong earnings; the telco posted QR879m; up 75 percent YoY, outperforming around QR453m estimated by consensus led by forex gains. Adding to that, QIB reported better than expected net profit at QR492m, up23 percent YoY, on the back 38 percent higher net interest income YoY. QNB's 1Q16 net income of QR2.8bn in 1Q16 up 7 percent YoY, in line with consensus' median, because of a pickup in trading gains and lower provisioning charges in 1Q16.
The SICO analysts who covered Qatar's 17 listed companies, including eight banks and two telecom companies, noted 47 percent of the companies in Qatar met estimates while 35 percent were better.
Sixty-four percent of real estate & construction companies in the region reported higher than expected in 1Q16. On the other hand, Consumers reported 48 percent lower than estimated results YoY; Saudi discretionary consumer companies reported lower sales coming from a higher base last year, as a result of the two month bonus.
Also Saudi consumers were also hit by higher tariffs and those with operations in Egypt were hit by currency devaluation. Petrochemical companies' aggregate earnings were 47 percent higher than expected. Also, 46 percent of GCC telecom companies reported above estimated earnings.
Overall, GCC companies reported a 9 percent YoY decline in earnings, with all countries' aggregate earnings, except Oman (up14 percent YoY), decreasing on a YoY basis. Ooredoo Oman's earnings increased by 18 percent YoY reaching OMR 12.6m while Raysut Cement reported 1Q16 net profit of OMR 8.1m up 34 percent YoY.
GCC Banks' overall profits decreased by 1 percent YoY. NBK declined 18 percent YoY from $344mn to $ 281mn in 1Q16; down 18 percent YoY, due to absence of one-off gain from an asset sale which positively impacted 1Q15 earnings. CBQ posted weak bottom line at $79m, down 36 percent YoY, coming from marginally lower net interest income and fee income YoY along with higher operating expenses and provisioning charges YoY.
© The Peninsula 2016
