08 April 2009
DOHA: Qatari Companies listed on DSM realized good results at the end of year 2008, despite the global economical crisis and its effect on the financial institutions. The 43 listed companies realized profits of around QR28.49bn, an increase of 33.42 percent compared to 2007 profits of QR21.36bn. The listed companies on DSM are distributed on 4 sectors which are: Banking Sector (contains 9 banks), Insurance Sector (5 companies), Industrial Sector (7 companies) and Services sector (22 companies). At the yearend results, only one company showed losses, while 6 companies reported a decline in profits compared to 2007, while the other 34 companies recorded increase in profits.
Two companies were excluded from this comparison, which are: Al-Khaleej Commercial Bank, the newest listed bank, which realized a net profit of QR103.6mn from the period of January 9, 2007 to December 31, 2008, and Gulf International Services, which is the most recent company listed on DSM. The company realized a net profit of QR423.41mn for the year 2008.
The industrial sector registered the highest increase among the 4 sectors in the net profits for the year 2008, of 46.26 percent, followed by the Services sector which witnessed a rise in it's net profit by 36.13 percent, Insurance sector came third, with 23.03 percent increase and last was the banking sector, with an increase of 23.01 percent compared to last year's profit.
The heavy weight, Industries Qatar Company, registered the highest profit among all of the listed companies, recording QR7.28bn, in 2008 as compared to QR4.98bn in 2007, showing an increase of 46 percent. The massive profit realized on the third quarter of 2008, worth QR7.18bn had its good impact on the final result at the end of 2008, as the global retreat in petrochemical, fertilizers & steel materials' prices dropped because of the Global economical crisis.
Qatar Meat and Livestock Company, recorded the highest increase in profits among all listed shares as its income rose by 374.67 percent in 2008, to QR39.33mn compared to QR8.29mn recorded in 2007. The increase resulted amid the government's decision to fix selling prices.
The economical crisis had its impact on Gulf Warehousing Company, which realized losses of QR16.53mn in 2008, compared to a profit of QR1.4mn in 2007. These losses were caused by the drop in prices of machinery and the losses resulting from a sister concern. As a solution, the company announced that it will merge with Agility - Qatar, which is a subsidiary of Agility Kuwait, after finalizing the legal procedures.
The fourth quarter gave a significant below to the banking sector, as losses reached QR5.96bn amid the global crisis. Despite the losses, the Qatari banking sector recorded the lowest rate of loss compared to the other GCC banking sectors in the last quarter of 2008, mainly because of the government's interference by way of agreeing to buy 10 to 20 percent of the bank's capitals. The total profit realized by the banking sector reached QR10.04bn, showing an increase of 23.01 percent in 2008, compared to 2007 total profit of QR8.16bn.
Out of the 9 banks, one bank witnessed retreat in gains of 23.10 percent reaching QR917.04mn in 2008, from QR1.19bn in 2007. On the other hand, the heavy weight, Qatar National Bank, reported profit of QR3.65bn, showing an increase of 45.66 percent in 2008. This gain came on the back of the distinguished enhancement in most of the sources of income, as the interest income activities boosted by 48 percent to reach QR2.86bn by the end of 2008, compared to QR1.93bn in 2007.
Commercial Bank also witnessed an increase of 22.41 percent to reach QR1.70bn in 2008, compared to QR1.39bn in 2007. Also, Qatar Islamic Bank showed an increase in profits by 30.84 percent to reach QR1.64bn in 2008 compared to QR1.26bn in 2007. First Finance Company witnessed an increase in profits of 39.61 percent to reach QR145.0mn in 2008 compared to QR103.86mn the year before.
Profits in the insurance sector reached QR939.75mn in 2008 compared to QR763.85mn in 2007, realizing an increase of 23.03 percent. All the companies in this sector registered an increase in their profits compared to the last year. Looking at the biggest company in this sector in term of market capitalization, Qatar Insurance Company realized QR510.8mn in 2008, compared to QR472.68mn in 2007, registering an increase of 8.06 percent. The company's profits were affected by the decrease of the General Index in DSM in the last few months of the year as it owns a big investment portfolio.
Qatar General Insurance and Reinsurance realized the highest increase in this sector of 80.93 percent to reach QR226.27mn in 2008 compared to QR125.06mn in 2007. It is worth mentioning that the company had registered in the fourth quarter of 2008 its first time losses during 3 years, worth QR240.06mn. This was caused by the increase in debt and investments compared to the first three quarters. On the other hand general & administrative expenses increased to reach QR70mn in the last 3 months, while it was QR43mn during the first 9 months in 2008. Also, Qatar Islamic Insurance realized a net profit of QR68.51mn in 2008 compared to QR44.37mn in 2007, showing an increase of 54.38 percent.
Looking at the Industrial sector, total profits reached around QR8.55bn in 2008, compared to QR5.85bn in 2007, showing an increase of 46.26 percent. In this sector, Zad Holding Company (Qatar Flour Mills- before) witnessed the highest increase in profits among the sector of 121.82 percent to reach QR47.68bn in 2008 compared to QR21.50bn the year before. United Development Company realized a net profit of QR583.47mn for 2008 compared to QR339.57mn in 2007, recording an increase of 71.83 percent on the back of the increase in assets to QR7.4bn and the increase of its revenues to QR2.2bn. Qatari German for Medical Devices realized a profit of QR6.78mn in 2008 compared to a loss of QR1.11mn in 2007.
This progress was caused by a compensation received by the compny amounting to QR10.74mn for losses from the provider of the patents and know how (Siekmann GMBH) due to non commencing production in the schedule period. As for the Services sector, net profit increased by 36.13 percent to reach QR8.97bn in 2008, compared to QR6.59bn in the previous year. In this sector, Ezdan Real Estate Company witnessed an increase of 141.89 percent to reach QR1.36bn in 2008 compared to QR561mn in 2007, after the company purchased investment projects (plots of lands), which were revalued and generated gains amounting to QR772.15mn.
Qatar Fuel (Woqood) witnessed an increase of 95.63 percent in its profit to reach QR1.21bn in 2008 compared to QR616.26mn in the previous year on the back of the increase in prices of fuel which registered the highest record ever in 2008 that might never happen again.
DOHA: Qatari Companies listed on DSM realized good results at the end of year 2008, despite the global economical crisis and its effect on the financial institutions. The 43 listed companies realized profits of around QR28.49bn, an increase of 33.42 percent compared to 2007 profits of QR21.36bn. The listed companies on DSM are distributed on 4 sectors which are: Banking Sector (contains 9 banks), Insurance Sector (5 companies), Industrial Sector (7 companies) and Services sector (22 companies). At the yearend results, only one company showed losses, while 6 companies reported a decline in profits compared to 2007, while the other 34 companies recorded increase in profits.
Two companies were excluded from this comparison, which are: Al-Khaleej Commercial Bank, the newest listed bank, which realized a net profit of QR103.6mn from the period of January 9, 2007 to December 31, 2008, and Gulf International Services, which is the most recent company listed on DSM. The company realized a net profit of QR423.41mn for the year 2008.
The industrial sector registered the highest increase among the 4 sectors in the net profits for the year 2008, of 46.26 percent, followed by the Services sector which witnessed a rise in it's net profit by 36.13 percent, Insurance sector came third, with 23.03 percent increase and last was the banking sector, with an increase of 23.01 percent compared to last year's profit.
The heavy weight, Industries Qatar Company, registered the highest profit among all of the listed companies, recording QR7.28bn, in 2008 as compared to QR4.98bn in 2007, showing an increase of 46 percent. The massive profit realized on the third quarter of 2008, worth QR7.18bn had its good impact on the final result at the end of 2008, as the global retreat in petrochemical, fertilizers & steel materials' prices dropped because of the Global economical crisis.
Qatar Meat and Livestock Company, recorded the highest increase in profits among all listed shares as its income rose by 374.67 percent in 2008, to QR39.33mn compared to QR8.29mn recorded in 2007. The increase resulted amid the government's decision to fix selling prices.
The economical crisis had its impact on Gulf Warehousing Company, which realized losses of QR16.53mn in 2008, compared to a profit of QR1.4mn in 2007. These losses were caused by the drop in prices of machinery and the losses resulting from a sister concern. As a solution, the company announced that it will merge with Agility - Qatar, which is a subsidiary of Agility Kuwait, after finalizing the legal procedures.
The fourth quarter gave a significant below to the banking sector, as losses reached QR5.96bn amid the global crisis. Despite the losses, the Qatari banking sector recorded the lowest rate of loss compared to the other GCC banking sectors in the last quarter of 2008, mainly because of the government's interference by way of agreeing to buy 10 to 20 percent of the bank's capitals. The total profit realized by the banking sector reached QR10.04bn, showing an increase of 23.01 percent in 2008, compared to 2007 total profit of QR8.16bn.
Out of the 9 banks, one bank witnessed retreat in gains of 23.10 percent reaching QR917.04mn in 2008, from QR1.19bn in 2007. On the other hand, the heavy weight, Qatar National Bank, reported profit of QR3.65bn, showing an increase of 45.66 percent in 2008. This gain came on the back of the distinguished enhancement in most of the sources of income, as the interest income activities boosted by 48 percent to reach QR2.86bn by the end of 2008, compared to QR1.93bn in 2007.
Commercial Bank also witnessed an increase of 22.41 percent to reach QR1.70bn in 2008, compared to QR1.39bn in 2007. Also, Qatar Islamic Bank showed an increase in profits by 30.84 percent to reach QR1.64bn in 2008 compared to QR1.26bn in 2007. First Finance Company witnessed an increase in profits of 39.61 percent to reach QR145.0mn in 2008 compared to QR103.86mn the year before.
Profits in the insurance sector reached QR939.75mn in 2008 compared to QR763.85mn in 2007, realizing an increase of 23.03 percent. All the companies in this sector registered an increase in their profits compared to the last year. Looking at the biggest company in this sector in term of market capitalization, Qatar Insurance Company realized QR510.8mn in 2008, compared to QR472.68mn in 2007, registering an increase of 8.06 percent. The company's profits were affected by the decrease of the General Index in DSM in the last few months of the year as it owns a big investment portfolio.
Qatar General Insurance and Reinsurance realized the highest increase in this sector of 80.93 percent to reach QR226.27mn in 2008 compared to QR125.06mn in 2007. It is worth mentioning that the company had registered in the fourth quarter of 2008 its first time losses during 3 years, worth QR240.06mn. This was caused by the increase in debt and investments compared to the first three quarters. On the other hand general & administrative expenses increased to reach QR70mn in the last 3 months, while it was QR43mn during the first 9 months in 2008. Also, Qatar Islamic Insurance realized a net profit of QR68.51mn in 2008 compared to QR44.37mn in 2007, showing an increase of 54.38 percent.
Looking at the Industrial sector, total profits reached around QR8.55bn in 2008, compared to QR5.85bn in 2007, showing an increase of 46.26 percent. In this sector, Zad Holding Company (Qatar Flour Mills- before) witnessed the highest increase in profits among the sector of 121.82 percent to reach QR47.68bn in 2008 compared to QR21.50bn the year before. United Development Company realized a net profit of QR583.47mn for 2008 compared to QR339.57mn in 2007, recording an increase of 71.83 percent on the back of the increase in assets to QR7.4bn and the increase of its revenues to QR2.2bn. Qatari German for Medical Devices realized a profit of QR6.78mn in 2008 compared to a loss of QR1.11mn in 2007.
This progress was caused by a compensation received by the compny amounting to QR10.74mn for losses from the provider of the patents and know how (Siekmann GMBH) due to non commencing production in the schedule period. As for the Services sector, net profit increased by 36.13 percent to reach QR8.97bn in 2008, compared to QR6.59bn in the previous year. In this sector, Ezdan Real Estate Company witnessed an increase of 141.89 percent to reach QR1.36bn in 2008 compared to QR561mn in 2007, after the company purchased investment projects (plots of lands), which were revalued and generated gains amounting to QR772.15mn.
Qatar Fuel (Woqood) witnessed an increase of 95.63 percent in its profit to reach QR1.21bn in 2008 compared to QR616.26mn in the previous year on the back of the increase in prices of fuel which registered the highest record ever in 2008 that might never happen again.
© Kuwait Times 2009
