Qatari companies forecast to grow in fourth quarter
12 Jan 2016 - 1:54
By Satish Kanady
DOHA: The earnings of Qatari companies are forecasted to grow by 4 percent year-on-year for the fourth quarter of 2015 (Q4, 15), according to a consensus estimate by Investment Bank SICO.
In a research note sent to The Peninsula yesterday, SICO analysts said Ooredoo is expected to report a net income of QR523m for Q4, 15, compared with QR55m reported for the same period in 2014. SICO which covers 17 top companies of Qatar projected a combined profit of $2.07bn for Q4,15.
QNB’s profits are projected to increase by 12 percent. Profits of Industries Qatar (IQ) is estimated at QR1.12bn. Lower urea and commodity chemical prices are expected to impact IQ’s earnings. Qatar Electricity and Water’s profit is expected to increase by 7 percent to QR384m. Qatar Navigation fourth quarter profit is expected to touch QR238m. SICO’s GCC consensus estimates indicates 5 percent year-on-year rise in the fourth quarter profits. Saudi companies’ earnings are estimated to increase 9 percent year-on-year due to lower losses from Mobily. UAE is expected to report 1 percent decline in the fourth quarter profits.
Saudi’s petrochemicals aggregate earnings are expected to decline 26 percent YoY due to lower product prices across the board and plant shutdowns. SABIC’s bottom line is forecasted to decline by 4 percent YoY and Tasnee is expected to report a net loss of SR165m vs a net gain of SR161m a year earlier led by weak titanium dioxide and commodity chemical prices. Saudi banks are estimated to report a one percent YoY increase in earnings.
UAE companies are expected to weigh down as Telecoms and Real estate companies wipe out aggregate Banks’ profit growth. Etisalat’s net income is expected to contract by 11 percent YoY as international operations continue to pressure profits. In the real estate sector, Deyaar’s is projected to report a net loss of Dh28.9m vs a net gain of Dh9.9m a year earlier. In terms of Banks, ADCB’s profit is expected to rise by 14 percent YoY due to healthy net interest income led by lending book growth.
Meanwhile, a GCC market performance report for the year 2015 released by the Global Investment House (GIH) said trading activities fell due to negative sentiments over the region.
The sharp fall in oil prices weighed on investor sentiments most of the time.
Qatari bourse’s benchmark index experienced pressure from external factors such as the downgrade of the global growth forecast by the IMF. However, by the end of the month, strong buying from foreign investors offset selling pressure from local institutional and retail investors.