Aamal’s net profit at QR379m; group revenue reaches QR1.25bn
31 Oct 2017 - 0:00
Aamal Company’s total net profit for the nine months ended September 30, 2017 stood at QR379m, down 11 percent compared to the same period in the previous year. Net profit attributable to equity holders of the company is down by 1 percent year-on-year to QR352.9m. Gross profit was down by 16 to QR418.8m
The Gulf’s fastest growing diversified company’s group revenue was down 37 percent to QR1.25bn, primarily due to loss of control of two subsidiaries.
Aamal’s earnings per share stood at QR0.56 for the first nine months, compared to QR0.57 from a year ago. The total net profit is stated before the deduction of non-controlling minority interests. Commenting on the financial results Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal said: “The same factors which led to a decline in revenues and profits for the first six months of 2017 have continued to impact Aamal Company’s financial performance during the third quarter of the year.
Key among these are the loss of control of two subsidiaries in our Industrial Manufacturing division which has affected the presentation of our financials and comparison with the first nine months of 2016, the ongoing redevelopment work at City Centre Doha, and several one-off contracts being awarded during the comparative period last year.”
An additional factor was the extended time needed to rearrange freight lines to ensure the supply of materials and products during the third quarter.
This was achieved as a result of the changes we made to shipping routes and supply chains which were implemented effectively. It is important to note that these factors should not impact Aamal Company’s financial results during the first half of 2018, Sheikh Faisal said. “We will continue to leverage our strong financial position and to pursue our successful diversification strategy, building on Aamal Company’s leading positions across a number of different sectors and selectively expanding so as to create long-term shareholder value. As I mentioned at the time of our half year results, we are currently evaluating several exciting new business opportunities, particularly in our Industrial Manufacturing division, which will benefit all of our stakeholders and will be announced in due course,” he added.
Sheikh Mohamed bin Faisal Al Thani, Vice-Chairman and Managing Director of Aamal, commented: “Aamal Company continues to assess market requirements across the many sectors in which we operate, to expand and diversify our business, and to take the lead in capturing new opportunities. Looking forward, creating new revenue streams either through organic growth or establishing new activities remains the core of our strategy. As an example, we would particularly highlight the expansion and redevelopment work at City Center Doha which is now in an advanced stage, and the expected positive effect it will generate through increased demand for space from tenants. City Center’s future profitability is expected to make up for the temporary fall in profits which we have inevitably seen during the redevelopment phase.”
The company remains well-placed to take advantage of suitable opportunities as they arise and the cash flow position is looking increasingly strong. “Our outlook for the remainder of 2017 and beyond remains positive,” Sheikh Mohamed said.