Doha, Qatar: The Board of Directors of Aamal Company (“Aamal”), one of the region’s leading diversified companies, yesterday announced its financial results for the six months ended 30 June 2024.

The company reported total revenue of QR1,045.2m for first half of 2024 (H1 2023: QR1,067.4m), with the slight fall driven by the completion of the Aamal Cables contract. The gross profit increased by 9.7% to QR261.3m in H1 2024 (H1 2023: QR238.2m). There were no fair value gains on investment properties in either H1 2024 or H1 2023 and the reported earnings per share was up 12.9% to QR0.030 (H1 2023: QR0.026). While the net capital expenditure increased by QR8m to QR19.9m (H1 2023: QR11.9m) gearing decreased further to 0.69% (H1 2023: 1.7%).

Sheikh Mohamed bin Faisal bin Qassim Al Thani, Vice Chairman and Managing Director of Aamal, commented: “I am proud to report a strong performance by Aamal during the first half of 2024, with net profit up 12.1% year-on-year and positive results recorded across most of our segments and businesses, despite a marginal 2.1% decline in revenue year-on-year. Throughout the period, Aamal continued to showcase the resilience and agility of its diversified business model, successfully navigating changing market dynamics and steadily advancing its strategic growth plans, both organically through our existing businesses and through new investment avenues.

“Looking ahead, our diversified business model and strong balance sheet will continue to enable us to capitalize on a wide spectrum of opportunities across key sectors. In alignment with Qatar’s robust economic growth and the Qatar National Vision 2030, we remain firmly committed to contributing to the nation’s sustainable development and economic diversification. I am confident that Aamal will continue to deliver positive results, adding value for all our shareholders and wider stakeholders.”

Our Industrial Manufacturing segment saw a 43.9% increase in net profit year-on-year, despite a 60.6% drop in revenues which was largely due to the completion of the Aamal Cables contract.

Aamal Readymix performed particularly strongly, securing several new contracts for major construction projects.

In addition, the business commissioned a large-scale concrete recycling plant with capacity to recycle all concrete waste produced during factory operations, and it continues to reduce its environmental footprint. Ci-San Trading’s performance was driven by stable charter occupancy and better shipping rates.

While Aamal Cement secured new contracts and is expected to perform well in the second half of 2024, it was impacted by delays in construction-related projects. Both Aamal Cement Industries and Frijns Structural Steel were also adversely impacted by intense price competition impacting margins. Frijns is extending its product and services portfolio by adding piping and spooling services, as well as undertaking projects outside of Qatar. This will enable it to meet the needs of industrial contractors with a broader portfolio while maintaining its reputation as a high-end, reliable supplier.

City Center Doha continued to see strong leasing, with over 85% of space leased and new shops opening such as Gold Souk. The Mall is enjoying strong interest from leading brands and further new openings are anticipated.

Rashid bin Ali Al Mansoori, Chief Executive Officer of Aamal, commented: “These strong results once again demonstrate Aamal’s resilient business model, leading market position, and solid financial foundations.

“In Industrial Manufacturing, I would highlight the recent acquisition which sees Aamal now fully own Ci San Trading, including subsidiaries Gulf Rocks and Aamal Maritime Transportation Services. This acquisition grants us complete control over these businesses, allowing us to further enhance Ci-San’s market-leading position, expand its operations, and increase its competitiveness. Additionally, we announced the award of a major QR1bn contract for El Sewedy Cables with Kahramaa, complementing our previous first quarter contract worth QR1.2bn. Elsewhere, Aamal Readymix performed strongly, securing several major projects.

“Looking ahead, we have good reason to be optimistic about maintaining the momentum generated during the first six months of the year, and we are exploring new sectors such as Energy and IT through our recently announced subsidiaries, Aamal Energy and Aamal Information Technology.”

A conference call to discuss the results will be held on Monday 29 July 2024 at 2.00pm Doha time.

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