Qatar listed firms' Q4 profits to grow by 18%

 10 Jan 2017 - 21:04

By Satish Kanady / The Peninsula

Led by Industries Qatar (IQ), Qatar’s listed companies’ fourth quarter (Q4, 16) are projected to grow by an estimated 18 percent on year-on-year basis. IQ earnings (+46 percent) are expected to benefit from higher steel and commodity chemical prices.
Ooredoo (+46 percent) and QNB (+29 percent) are among other companies that are expected lift the Q4 earnings. QIIB is projected to grow by 41 percent on quarter-on-quarter basis, invetment bank SICO that covered a total of 166 companies in the GCC, including 15 in Qatar, noted in its 'consensus earnings estimates for Q4, 16'. The covered companies represent 77 percent of the total market capitalization.
According to SICO analysts’ estimates,  the GCC companies’ Q4 profits are forecasted to increase 15 percent YoY, but decline 10 percent QoQ. Most GCC companies’ results are expected to be higher on YoY, except for UAE .
Saudi Companies’ profits that have been estimated are expected to increase by 15 percent YoY, led by earnings growth YoY from SABIC. Also, aggregate Saudi banks earnings are forecasted to report modest earnings growth (+2 percent), with earnings of Al Rajhi Bank’s estimated to increase 4 percent  (supported by robust NII growth), Samba 9 percent , and SABB 10 percent  due to NIM expansion. In telecoms, the aggregate earnings are expected to be 13 percent higher.
UAE companies’ aggregate earnings are estimated to remain unchanged YoY. Etisalat’s profit is forecasted to be 17 percent; the Egyptian pound devaluation to impact performance. Adding to that, earnings of UAE banks are estimated to be 7 percent lower, ADCB’s bottom line is estimated to decline by 18 percent as the bank is expected to be hit by higher provisioning charges.  FGB is forecasted to post 21 percent lower earnings, led by higher operating expenses and NIM contraction.
On the positive side, NBAD’s profit is expected to be 24 percent higher YoY supported by strong non-interest income and lower provisioning. As for real-estate; Emaar’s profit is projected at AED 1.5bn (+43 percent YoY), Emaar’s YoY growth in operating profit will be led by higher property development revenue. Emaar Malls is expected to post 8 percent YoY increase in earnings, on the back of rise in base rentals.
Kuwaiti companies’ earnings are forecasted to increase 16 percent YoY. NBK’s bottom line is expected to improve 31 percent. CBK is estimated to report 6 percent higher net profit. In addition, Agility’s 4Q16 bottom line expected to improve 15 percent, lifted by growing contribution from higher margin.
 Omani companies’ results are expected to improve significantly (+380 percent) YoY, as Omantel is forecasted to report  net income of OMR27.6m, against the OMR40m net loss booked in 4Q15 which was impacted by impairment of Worldcall, voluntary end of service and forex losses booked back then. Bank Muscat’s profit is estimated to increase by 5 percent, as strong NII and non-interest income are expected improve.
Bahraini companies’ earnings are projected to improve by 77 percent. AUB, Batleco and Alba are the main drivers.  AUB’s net income is forecasted to rise 15 percent led by higher non-interest income.  Batelco is expected to report 18 percent YoY increase in its 4Q16 earnings, as 4Q15 was impacted by impairments charges.