The cumulative nine-month net profits of the banks and financial services sector, which has 12 listed entities, registered a 12.41% jump to QR14.82bn. The segment was the largest contributor of the overall net profit at 46%. PICTURE: Nasar TK

By Santhosh V Perumal/Business Reporter

 

Earnings boost, especially in the real estate and banks and financial services sectors, improved the overall net profitability of the listed companies in Qatar during the first nine months of this year.

The listed companies’ cumulative net profits grew 8.74% in January-September this year against 6.67% in the comparable period of 2013, according to Qatar Stock Exchange data.

The QSE’s 20-stock main index jumped 19.49% quarter-do-date in September 2014; indicating a positive correlation between the profitability and the corporate sector’s increased optimism.

The cumulative net profits of the 42 listed companies stood at QR32.42bn compared to QR29.81bn in the 2013 period.

Vodafone Qatar follows a January-December format compared with the other companies that have the April-March format.

Indicating the recovery in the sector, the real estate segment witnessed the maximum rise in net profitability, followed by banks and financial services, industrials and transport. But insurance witnessed erosion in its net earnings despite local companies having bagged a huge risk cover order from Qatar Rail.

The real estate sector, which has four listed constituents, witnessed a 37.49% surge in cumulative net profit to QR2.34bn compared to 16.19% in the previous-year period. The sector outperformed the main stock index by rising 21.28%. The segment contributed 7% to overall net profits.

The real estate sector has shown signs of revival because of the large scale infrastructure development with many projects being awarded or in the pipeline; which has cast a “positive” spin-off effect for the related sectors.

The cumulative net profits of the banks and financial services sector, which has 12 listed entities, registered a 12.41% jump to QR14.82bn compared to 5.01% in the previous-year period. The sector outperformed the main index by gaining 21.52%. The segment was the largest contributor of net profit at 46%.

The consumer goods and services sector, which has eight listed companies, saw its net profit grow 10.07% to QR1.36bn against 10.03% in the year-ago period. Underperforming the index, the consumer goods index rose 16.39%. Its share in overall net profit was 4%.

The industrials sector, which has nine listed constituents, saw its net profits rise 3.18% to QR9.07bn compared to 0.65% in the previous-year period. The sector underperformed the market with its index rising 13.21%. The industrials contributed 28% to overall net profit of the listed firms.

The industrial sector’s earnings have rather been dented by shutdowns in market heavyweight Industries Qatar, but the net profitability of the sector ought to improve in the full-year.

The cumulative net profit of the transport sector, which has three listed entities, reported a 14.94% growth to QR1.62bn compared to 11.56% in the previous-year period. The sector underperformed the main index by registering 15.57% gain in its index. The transport segment constituted 5% of overall net profit.

The telecom sector saw its net profit rise 0.5% to QR2.08bn against a 4.04% decline in the comparable period of 2013. The segment underperformed the main index with a 16.58% rise. Its share in overall net profit was 6%.

The insurance segment, which has five listed companies, saw its net profit plummet 20.61% to QR1.13bn against a stupendous 122% growth in the year-ago period. The sector saw its index gain 19.85% its share in total net profit was 3%.