Aamal Company has reported net profit of QR90.6mn on a 3% rise in total revenues to QR972mn, translating into earnings-per-share of QR0.01 at the end of the nine-month period ended September 30, 2020.
“While Aamal’s operating and financial performance continued to be impacted by the ongoing Covid-19 pandemic throughout the third quarter of 2020, signs of recovery are beginning to emerge," its chairman HE Sheikh Faisal bin Qassim al-Thani said.
Despite the challenging market conditions presented by the pandemic and the strong competition, the trading and distribution segment delivered a commendable performance with revenue and net profit expanding 26% and 18%, respectively, largely attributable to Ebn Sina Medical, which recorded a significant increase in orders.
Meanwhile, the industrial manufacturing segment has started seeing signs of improvement in the levels of project activity, as Qatar prepares to host the 2022 FIFA World Cup.
Aamal Cables won a major three-year contract with Kahramaa, the sole transmission and distribution system owner and operator for the electricity and water segments in Qatar, to supply 11KV medium voltage and pilot power cables.
"This significant contract, worth QR694m over three years, demonstrates our strong competitive positioning in the sector," according to Sheikh Faisal.
The industrial manufacturing segment recorded top line growth of 23.8% year-on-year driven by new contract wins, although pricing and margins remained under pressure from continuing acute competition at Aamal Readymix.
"In response, we are continuing to focus on improving operational efficiency, optimising our production base and diversifying into new revenue streams," he said.
The performance of the property segment continued to be impacted by the waiving of rents for commercial tenants at both City Center Doha and Souk Al Harraj, a decision that it took to support the tenants during these challenging times.
While most of City Center Doha has now reopened following its closure due to Covid-19, Aamal has continued to provide financial support to tenants throughout the third quarter while footfall recovers.
In the managed services segment, Aamal Services has been impacted by reduced demand for hospitality and facilities management services, whilst other businesses such as Fun City and Winter Wonderland remained closed as a result of Covid-19-related restrictions imposed by the Qatari government.
Sheikh Mohamed bin Faisal al-Thani, chief executive and managing director of Aamal, said the group has remained focused on navigating a uniquely challenging environment, preserving the strength of its balance sheet and ensuring that it remains well positioned for the future by implementing operational improvements across the group.
“We expect conditions to remain challenging throughout the remainder of 2020 as uncertainty prevails around the Covid-19 pandemic, its progression, severity and duration. Notwithstanding the uncertainty in global markets, in the longer term, there are significant opportunities across all four of Aamal’s segments," he said.
Sheikh Mohamed said he is confident that the diversification of the business model and the strength of the balance sheet would ensure the group will remain well-positioned to grasp opportunities as the market recovers.