Qatar - The listed companies in the main market have reported a total net profit of QR51.18bn in 2024 as consumer goods and transport sectors witnessed faster earnings expansion, according to data compiled by the Qatar Stock Exchange.

Amidst challenging regional environment and interest rate rigidities, the listed companies’ net earnings shot up 8.7% year-on-year in 2024 against a 3.03% decline in the previous year.

The 2024 net profitability improvement was seen despite declines in the earnings of real estate sector as well as slowdown in the net profit growth in the banking and telecom sectors. On an absolute basis, the banking sector remained the largest contributor at more than 59% in the review period.

The consumer goods and services sector, which has 13 listed entities, saw its total net profit surge 10.74% year-on-year to QR1.67bn at the end of 2024 against a 4.73% decline in 2023. The sector contributed 3.26% to the overall net profitability in the review period against 3.21% in 2022.

The transport sector, which has three listed constituents, saw total net profits grow 4.54% year-on-year to QR2.93bn compared to 4.14% in 2023. The sector’s net profit constituted 5.72% to the total net profit of the listed companies in 2024 against 5.95% the previous year.

The industrials sector, which has 10 listed constituents, saw a 1.8% year-on-year shrinkage in net profits to QR9.27bn in 2024 compared to a 35.94% contraction in 2023. The sector contributed 18.11% to the overall net earnings of the listed entities in 2024 against 20.05% in 2023.

Within the industrials sector, six of them, especially two underlying firms that have direct linkages with the hydrocarbons sectors, witnessed decline in net earnings owing to the subdued demand.

The insurance sector, which has seven companies, registered net earnings of QR1.31bn in 2024 against net loss of QR0.36bn in 2023. The sector contributed 2.56% to the overall net profitability in 2024.

Economic expansion, population growth, and mandatory insurance schemes will increase demand in most Gulf countries this year. Overall satisfactory underwriting results and relatively high interest rates will support earnings, according to Standard & Poor’s, a global credit rating agency.

The Qatar Central Bank’s (QCB) Third Financial Sector Strategy had said plans were afoot to expand the product offerings such as life and health and to launch climate insurance as well as tailored insurance services for priority sectors as logistics and manufacturing.

The banks and financial services sector, which has 13 listed entities, reported a 6% year-on-year jump in total net profit to QR30.31bn against a 7.64% expansion in 2023. The sector contributed 59.22% to the total net profits of the listed companies in January-December 2024 compared to 60.47% in 2023.

The telecom sector, which has two constituents, reported a 13.52% jump year-on-year in net profit to QR4.04bn in 2024 against 24.22% growth in 2023. The sector had contributed 7.89% to total net profit in 2024 compared to 7.56% the previous year.

The realty segment, which has four listed entities, saw total net earnings tank 3.61% year-on-year to QR1.7bn in 2024 against a 6.46% surge in 2023. The sector constituted 3.32% to the overall net profits in 2024 compared to 3.74% in 2023.

The venture market, which had two listed entities, registered a total profit of QR0.06mn in 2024, showing a 24.09% surge on an annualised basis. However, one of them has migrated to the main market this year.

© Gulf Times Newspaper 2022 Provided by SyndiGate Media Inc. (Syndigate.info).
Santhosh V. Perumal