Worries in the hydrocarbon segment due to lower oil prices appear to have hit the industrials hardest, whose double-digit net earnings plunge, led to a decline in the overall profitability of the listed companies on the Qatar Stock Exchange in 2015.
A perceptible slowdown in net earnings growth - especially in the real estate, banking, consumer goods and services and transport sectors - also led the net profitability of 42-listed companies (excluding Vodafone Qatar that follows April-March financial year) to decline 3.65% in 2015 against a 8.9% growth in the previous year, according to data collated by the domestic bourse.
The cumulative net profit amounted to QR43.94bn compared to QR45.61bn in 2014.
Of the seven sectors, three of them witnessed decline in net profitability; while four were in the positive trajectory with insurance alone bettering its prospects in the bourse, whose benchmark 20-stock Qatar Share Index plummeted 15.11% in 2015 compared to a 18.36% rise in 2014.
The industrials sector, which has nine listed constituents, saw its cumulative net profit plummet 24.15% to QR9.85bn against a modest 4.49% growth a year ago.
The sector, which contributed 22% to the overall net profitability of the listed companies in 2015, saw its index tank 21.11% in 2015 compared to a 15.42% jump in 2014.
The real estate segment, which has four listed entities, saw its net profit slowdown considerably by 11.91% to QR5.52bn compared to a high growth of 69.93% in the previous year.
The sector, which constituted 13% of the overall net profitability, however saw its index outperform the main index as it registered a 3.92% increase in 2015 against 14.92% in 2014.
The transport sector, which has three listed companies, recorded an 8.59% expansion in cumulative net profit to QR2.26bn against a 17% rise in 2014.
The sector, which contributed 5% to the overall net profitability, also outperformed the QSE’s main barometer as it gained 4.85% in 2015 compared to a 24.76% surge in 2014.
The banks and financial services sector, which has 12 listed constituents, reported a 2.96% rise in cumulative net profit to QR20.04bn compared to an 11.85% growth in the previous year.
The sector, whose share was 46% in the overall net profitability, witnessed its index shrink 12.42% in 2015 against a robust 31.11% expansion in 2014.
The consumer goods sector, which has eight listed entities, witnessed a 4.66% jump in cumulative net profit to QR1.94bn in 2015 against a 9.37% expansion a year ago.
The sector, which contributed 4% to the overall net profitability, saw its index decline 13.13% in 2015 compared to 16.13% increase in 2014.
However, the insurance sector, which has five listed companies, reported a 2.75% increase in cumulative net profit to QR2.21bn in 2015 compared to a huge 30.47% plunge a year ago.
The sector, which contributed about 5% to the overall net profitability of the listed companies, saw its index vault 1.9% in 2015 against 69.44% zoom in 2014.
The telecom sector bettered its position as the cumulative net profit decline was contained at mere 0.75% to QR2.12bn against 17.23% decline in 2014. However, the sector index suffered the most with it plummeting 33.6% in 2015 compared to 2.19% rise in 2014.