Optimistic economic projections, robust vaccination drive and easing of the Covid-19 restrictions have helped the listed firms post a strong double-digit year-on-year growth in the overall net earnings during the first nine months (9M) of 2021; indicating the resiliency of the corporate sector.
The net earnings' growth has been mainly on account of robust expansion in the net profitability of the insurance, industrials and consumer goods sectors, according to data compiled by the Qatar Stock Exchange.
The listed companies' total net profit soared 35.86% year-on-year to QR33.48bn during January-September 2021 against a 17.26% decline the year-ago period; reflecting the positive sentiments in Qatar, which is better placed in the Gulf region in the fight against the pandemic.
The resumption of business activities after the beginning of the easing of pandemic related restrictions, especially during the second quarter, had its reflection in the subsequent quarter too, helping in the overall earnings growth during 9M-21.
The banking and financial services and industrials sectors together contributed more than 86% of the cumulative net profits in the review period; hinting at the strong outlook for the non-hydrocarbons.
The insurance sector, which has six listed entities, reported a 524.61% surge year-on-year in total profit to QR0.8bn in 9M-21 against a 90.52% plunge in the previous-year period, when there were only five firms. The sector contributed more than 2% to the overall net profitability of the listed firms in the review period.
The proposed mandatory health insurance and the substantial expansion in the North Field are expected to augur well for the insurance sector in the future, according to reports.
The industrials sector, which has 10 listed constituents, saw a huge 228.74% year-on-year increase in net profitability to QR9.41bn against a 36.32% decline in the year-ago period. The sector contributed more than 28% to the overall net profitability of the listed entities during January-September 2021.
Within the industrials sector, the country’s underlying companies that have direct linkages with the hydrocarbons sectors saw price rebound, helping them substantially enhance the net earnings. The increased construction activities had also generated increased demand for raw materials associated with it.
The consumer goods and services sector, which has 10 listed entities, saw a 105.48% year-on-year expansion in cumulative net profit to QR1.31bn at the end of September compared to 53.73% shrinkage in the previous year period. The sector contributed about 4% to the overall net profitability in the review period.
The transport sector, which has three listed constituents, saw its cumulative net earnings grow 25.23% year-on-year to QR1.82bn compared to a 9.51% jump in the corresponding period of 2020. The sector's net profit constituted more than 5% of the total net profit of the listed companies during the nine months of this year.
The banks and financial services sector, which has 13 listed entities, reported 15.42% year-on-year growth in cumulative net profit to QR19.52bn against a 10.53% contraction the comparable period of 2020. The sector contributed more than 58% of the total net profits of the listed companies in January-September 2021.
The realty segment, which has four listed entities, saw an 11.47% year-on-year growth in net earnings to QR1.16bn during 9M-21 against a 36.77% drop in the year-ago period. The sector constituted more than 3% of the overall net profitability in the review period.
The net earnings' growth has been mainly on account of robust expansion in the net profitability of the insurance, industrials and consumer goods sectors, according to data compiled by the Qatar Stock Exchange.
The listed companies' total net profit soared 35.86% year-on-year to QR33.48bn during January-September 2021 against a 17.26% decline the year-ago period; reflecting the positive sentiments in Qatar, which is better placed in the Gulf region in the fight against the pandemic.
The resumption of business activities after the beginning of the easing of pandemic related restrictions, especially during the second quarter, had its reflection in the subsequent quarter too, helping in the overall earnings growth during 9M-21.
The banking and financial services and industrials sectors together contributed more than 86% of the cumulative net profits in the review period; hinting at the strong outlook for the non-hydrocarbons.
The insurance sector, which has six listed entities, reported a 524.61% surge year-on-year in total profit to QR0.8bn in 9M-21 against a 90.52% plunge in the previous-year period, when there were only five firms. The sector contributed more than 2% to the overall net profitability of the listed firms in the review period.
The proposed mandatory health insurance and the substantial expansion in the North Field are expected to augur well for the insurance sector in the future, according to reports.
The industrials sector, which has 10 listed constituents, saw a huge 228.74% year-on-year increase in net profitability to QR9.41bn against a 36.32% decline in the year-ago period. The sector contributed more than 28% to the overall net profitability of the listed entities during January-September 2021.
Within the industrials sector, the country’s underlying companies that have direct linkages with the hydrocarbons sectors saw price rebound, helping them substantially enhance the net earnings. The increased construction activities had also generated increased demand for raw materials associated with it.
The consumer goods and services sector, which has 10 listed entities, saw a 105.48% year-on-year expansion in cumulative net profit to QR1.31bn at the end of September compared to 53.73% shrinkage in the previous year period. The sector contributed about 4% to the overall net profitability in the review period.
The transport sector, which has three listed constituents, saw its cumulative net earnings grow 25.23% year-on-year to QR1.82bn compared to a 9.51% jump in the corresponding period of 2020. The sector's net profit constituted more than 5% of the total net profit of the listed companies during the nine months of this year.
The banks and financial services sector, which has 13 listed entities, reported 15.42% year-on-year growth in cumulative net profit to QR19.52bn against a 10.53% contraction the comparable period of 2020. The sector contributed more than 58% of the total net profits of the listed companies in January-September 2021.
The realty segment, which has four listed entities, saw an 11.47% year-on-year growth in net earnings to QR1.16bn during 9M-21 against a 36.77% drop in the year-ago period. The sector constituted more than 3% of the overall net profitability in the review period.