Aamal Company has reported a 34% growth year-on-year in net profit to QR153.7mn on a 7% growth in group revenue to QR679.6mn during January-March this year.
“2016 has started very well for us, continuing on from the excellent set of results that we reported for the full year 2015 back in February. The first three months of this year has seen a near 7% rise in revenues, which when combined with an expansion in operating margins, has led to a rise in total net profits of more than one third,” Aamal Company chairman Sheikh Faisal bin Qassim al-Thani said.
Highlighting that its financial gearing (net debt to net debt plus equity) reduced further to 2.5% (against 3.8% as on December 31, 2015), he said it reflects the strong free cash flow generation, which is a testimony to the focus it has put on generating positive returns on the capital deployed, thereby helping to sustain its profitable growth and create shareholder value.
“This low gearing also means that we can move swiftly should we identify suitable commercial opportunities that we would like to exploit,” Sheikh Faisal added.
In the first quarter, Aamal continued to grow its operations through organic means, including investing to expand the bulk carrying capacity at Aamal Maritime Transportation Services through the acquisition of a second vessel.
“As the Qatari economy continues to evolve and diversify, Aamal is uniquely well placed to reap significant upside through its strong and well-established businesses across the economic spectrum, allied to its ability to act quickly should new and considered opportunities present themselves,” he said.
Reported earnings per share grew 31% to QR0.21 during the review period.
Net capital investment expenditure rose to QR46.3mn, reflecting the fleet expansion at the Aamal Maritime Transportation Services subsidiary and Phase 2 of the redevelopment of the City Center Doha shopping mall.
“Aamal has always been at the forefront of Qatar’s development, helping to drive change as the country continues its rapid modernisation...Furthermore, strong foundations have been laid for the company to evaluate new commercial opportunities often quicker than its competitors, which gives it a key advantage,” according to Aamal vice chairman Sheikh Mohamed bin Faisal al-Thani.
Aamal managing director Tarek M El Sayed said the company’s diversification across key growth markets has enabled it to meet the growing demand for increasingly sophisticated and specialised products and services
“ As such, I believe Aamal provides an ideal entry point for investors wishing to gain a broad and balanced exposure to Qatar’s economic growth and development,” he added.