Doha: The total earnings for Qatari companies listed on the Qatar Stock Exchange (QSE) increased by 25 percent during the second quarter of 2021 (Q2 2021) to reach $2.6bn compared to $2.1bn during the corresponding period last year (Q2 2020).
Profit growth during the quarter was mainly led by key sectors on the exchange including Banks, Capital Goods and Materials that was partially offset by a decline in profits mainly for the Telecom and Energy sectors, according to Kamco Invest in its latest ‘GCC Corporate Earnings Report’.
Overall, GCC listed companies’ profits soared over 200 percent year-on-year (Y-o-Y) in Q2 2021 led by Energy, Bank and Material sectors. Kamco noted that the resumption of economic activity in the GCC to almost full scale was reflected in corporate profits booked during Q2 2021. It added that aggregate profits during the quarter breached the pre-COVID levels to reach $45.0bn during Q2 2021 compared to $14.2bn during Q2 2020. The sequential growth in net profit was also healthy at 17.6 percent as a majority of the sectors posted growth as compared to last year, Kamco added.
In terms of sector performance, the Gulf region’s Energy sector once again reported the biggest absolute profits at $24.5bn, up almost four fold (267.4 percent) during Q2 2021 compared to $6.7bn in Q2 2020, and an increase of 14.8 percent when compared to the previous month.
The Banking sector also reported higher profits during Q2 2021 that reached $8.2bn, almost double Y-o-Y and 1.9 percent Q-o-Q. The Y-o-Y growth in profits was seen across the region after record low profits reported last year, said Kamco. It added that profits for the Materials sector stood at $4.26bn during Q2 2021 compared to a loss of $780m in Q2 2020.
On the other hand, sectors that were resilient during the pandemic witnessed a Y-o-Y decline in profits, added the report. Telecom was one of the four sectors that posted a Y-o-Y decline with profits reaching $1.64bn during Q2 2021, a decline of 11.6 percent Y-o-Y and 18.6 percent Q-o-Q. Insurance, Retailing and Food & Staples Retailing sectors also posted marginal Y-o-Y decline in profits during Q2 2021.
In Qatar, the Banking sector reported a profit growth of 20.2 percent in Q2 2021 that reached $1.7bn, accounting for 67.3 percent of the overall exchange profits during the quarter.
The Capital Goods sector reported the biggest absolute increase in net profits during the quarter that reached $608.9m compared to $62.2m in Q2 2020. Industries Qatar recorded a net profit of $559.1m in Q2 2021 compared to $122.1m in Q1 2020 driven by increase in average selling prices as well as volumes.
Profits for the Materials sector reached $202.1m in Q2 2021 compared to a net profit of $29.3m in Q2 2020. The increase was mainly driven by MPHC and Qamco quarterly results. Notably, Qamco, which recorded a net profit of $44.4m in Q2 2021 compared to $1m, posted the highest half-yearly net profit since incorporation, driven by growth in global aluminium prices linked to macro-economic recovery and supply constraints. MPHC’s net profit also witnessed a strong growth to $143m in Q2 2021 compared to a profit of $21.2m. The growth was led by increase in production volumes as well as price improvements.
In the Telecom sector, Ooredoo’s consolidated net profits turned negative reporting a loss of $309.9m in Q2 2021; mainly driven by impairments related to Ooredoo Myanmar operations, noted the report. While net profits for Vodafone Qatar stood at $18.4m compared to $9m in Q2 2020 attributed by higher total revenues which increased by 8.5 percent Y-o-Y.
In the Energy sector, Qatar Fuel (Woqod) recorded a net profit of $56.1m in Q2 2021 against $12m in Q2 2020. On the other hand, Nakilat recorded a net profit of $84.9m in Q2 2021 against $73.4m in Q2 2020 mainly due to the commencement of the second phase of its fleet management transition from Shell International Trading and Shipping Company, the report said.
