The total earnings for Qatari-listed companies increased by 28 percent during the first quarter (Q1) of this year to reach $3.7bn as compared to $2.9bn in Q1, 2021. Also the earnings reported by GCC-listed companies reached a new record level during Q1, 2022 backed by a broad-based quarter on quarter (q-o-q) growth in profits across all sectors according to Kamco Invest report.
Qatar’s Banking sector reported a profit growth of 9.1 percent in Q1, 2022 that reached $1.8bn accounting for 48.5 percent of the overall exchange profits during the quarter.
“QNB reported a net profit increase of 10.4 percent in Q1, 2022 reaching $990.4m compared to a net profit of $896.9m. The bottom-line improvement was driven by strong growth in net interest income and a relatively smaller increase in non-interest income that more than offset a 39 percent increase in provisions during the quarter,” the report noted.
The Capital Goods sector reported the second biggest earnings during the quarter at $782.9m as compared to $428.3m in Q1, 2022. Net profits reported by Industries Qatar surged 89.5 percent to $740.5m in Q1, 2022 compared to $390.8m in Q1, 2021. Sales volumes for the quarter increased by 9 percent, primarily driven by higher plant operating rates which improved production volumes.
In the Telecom sector, Ooredoo’s consolidated net profits increased by 245 percent to $180.5m in Q1, 2022 compared to $52.3m in Q1, 2021. The Telco’s revenue grew 6 percent year on year (y-o-y) to $0.52bn in Q1, 2022 driven by growth in post-paid services, Ooredoo TV and B2B services. Vodafone Qatar maintained its growth trajectory in Q1, 2022, reporting a net profit of $29.4m for Q1, 2022, representing an increase of 64.5 percent y-o-y. Total revenue increased by 25 percent y-o-y to reach $200.8m driven by continued growth in the Company’s postpaid revenue and fixed broadband services in addition to higher service revenue. EBITDA for the period increased by 28 percent to reach $82.7m led by higher service revenue.
The Materials sector posted a net profit of $230.6m in Q1, 2022 compared to a net profit of $165.3m driven by higher profits reported by QAMCO and MPHC. QAMCO recorded a net profit of $65.6m in Q1, 2022 compared to net profit of $33.5m mainly led by higher average realised selling prices, which increased by 93.5 percent in Q1, 2022 vs Q1, 2021. MPHC net profit increased 18.2 percent to $121.3m in Q1, 2022 compared to a profit of $102.6m driven by higher revenue and selling prices.
The net profits for the energy sector improved by 29.7 percent y-o-y to reach $199.4m supported by the profits reported by Nakilat and Qatar Fuel Company (WOQOD). Nakilat registered a net profit increase of 20.6 percent to reach $104.6m for Q1, 2022 vs $86.7m for Q1, 2021. Qatar Fuel Company posted a net profit increase of 5 percent to reach $72m in Q1, 2022 vs $68.6m in Q1, 2021 mainly driven by increase in sales of petroleum and non-petroleum products.
The number of Woqod operating stations reached 119 by the end of the first quarter of 2022 and is expected to reach 129 by the end of 2022.
The report noted that the aggregate net profit for GCC-listed companies reached $65.4bn during the quarter as compared to $51.5bn during Q4, 2021 resulting in a q-o-q growth of 27 percent.
Earnings reported by GCC-listed companies reached a new record level during Q1, 2022 backed by a broad-based quarter on quarter (q-o-q) growth in profits across all sectors barring the Consumer Durables & Apparels sector. “The higher profitability reflected a continued and sustained recovery in economic activity across the GCC during the quarter. The PMI figures for Qatar, Saudi Arabia, UAE, and Dubai consistently remained above the growth mark of 50 during the first three months of the year backed by government efforts as well as robust private sector activity. In addition, banking credit to private sector also showed sustained growth in Qatar, Saudi Arabia, and Kuwait based on available data from the respective central banks,” it added.
