QSE ’14 earnings season sees slowdown in profit

Traders watch the Qatar Stock Exchange board. The cumulative net profit of 42-listed companies (excluding Vodafone Qatar) grew 8.9% in 2014 against 11.51% in the previous year.By Santhosh V Perumal/Business ReporterThe Qatar Stock Exchange witnessed a slight depressed earnings season in 2014 with the cumulative net profitability of the listed companies slowing down vis-à-vis previous year.The cumulative net profit of 42-listed companies (excluding Vodafone Qatar that follows April-March financial year) grew 8.9% in 2014 against 11.51% in the previous year. The cumulative net profit amounted to QR45.58bn compared to QR41.86bn in 2013.The insurance and consumer goods sectors were seen as the major drag on the overall profitability in 2014; while the telecom sector’s net profit decline was faster.The insurance sector, which has five listed constituents, reported a 30.47% decline in the cumulative net profit to QR2.15bn against 214.33% growth in the previous year. The sector, which contributed about 5% to the overall net profitability in 2014, saw its index vault 69.44% year-to-date (YTD) on December 31, 2014, substantially outperforming the 20-stock barometer that gained 18.36%.The consumer goods sector, which has eight listed companies, witnessed a 9.37% rise in the cumulative net profit to QR1.86bn in 2014 compared to 13.39% a year ago. The sector, which contributed 4% to the overall net profitability, saw its index under perform the market with its 16.13% gains YTD.The real estate segment, which has four listed constituents, registered a 69.93% jump in the cumulative net profit to QR4.93bn against 31.62% in the previous year. The sector, which constituted 11% of the overall net profitability, witnessed its index gain 14.92% YTD.The transport sector, which has three listed entities, recorded a 17% growth in the cumulative net profit to QR2.08bn compared to 5.61% in 2013. The sector, which contributed about 5% to the overall net profitability, saw its index surge 24.76% YTD.The banks and financial services sector, which has 12 listed companies, reported an 11.85% expansion in the cumulative net profit to QR19.43bn against 6.64% in the previous year. The sector, whose share was 43% in the overall net profitability, saw its index 31.11% YTD.The industrials sector, which has nine listed constituents, reported a 4.49% rise in the cumulative net profit to QR12.99bn compared to 3.11% a year ago. The sector, which contributed 28% to the overall net profitability of the listed companies in 2014, saw its index expand 15.42% YTD.The telecom sector witnessed a 17.23% decline in net profit to QR2.58bn against 9.7% in 2013, but the sector index had risen 2.19% YTD.