Earnings reported by the Gulf Co-operation Council listed companies reached a new record level during the second quarter (Q2) of 2022, backed by a broad-based quarterly growth in profits across all sectors barring the financials and pharma sectors, according to Kamco Invest.
The increase in profits of energy companies due to elevated oil prices around $100 per barrel level accounted for the bulk of the absolute increase in profits in the region, Kamco Invest said in its report.
The region showed strong consumer and business sentiments during the quarter despite a slowdown at the global level mainly due to higher inflation and the efforts by central banks to tame rising prices.
The aggregate net profit for the GCC-listed companies reached $77.3bn during the quarter compared to $65.7bn during Q1-2022, resulting in a quarter-on-quarter (q-o-q) growth of 17.6%. The year-on-year growth was even stronger at 62.6%.
Energy, banks and materials were the top three sectors by absolute profit growth compared to Q2-2021, accounting for almost 90% of total year-on-year growth in profits.
In terms of q-o-q growth, energy, materials and utilities were the top three sectors that more than compensated for the decline in profits for the diversified financial sector.
Saudi Aramco continued to be the biggest contributor to profit growth during the quarter. However, excluding Aramco, the growth in aggregate profits remained strong at 32.9% y-o-y and at 11.2% in terms of q-o-q growth.
In terms of regional trend, profit growth was seen across the seven exchanges during the quarter.
Total earnings for the Qatari-listed companies grew 41.2% y-o-y to $3.8bn during Q2-2022 with the banking sector reporting a profit growth of 11.1% to $1.9bn, which accounted for 48.6% of the overall exchange profits during the quarter.
The capital goods sector reported the third biggest earnings during the quarter at $845.4mn as compared to $592.1mn in Q2-2021.
The materials sector posted a net profit of $282.8mn in Q2-2022 compared to a net profit of $202.1mn the previous year period.
Net profit for the energy sector was seen improving 28.4% y-o-y to $182.7mn at the end of Q2, 2022.
Saudi Arabian-listed companies once again reported the biggest y-o-y growth during Q2-2022 with a net income growth of 70.4% followed by Abu Dhabi and Bahrain with 50.0% and 62.4% respectively.
The increase in profits of energy companies due to elevated oil prices around $100 per barrel level accounted for the bulk of the absolute increase in profits in the region, Kamco Invest said in its report.
The region showed strong consumer and business sentiments during the quarter despite a slowdown at the global level mainly due to higher inflation and the efforts by central banks to tame rising prices.
The aggregate net profit for the GCC-listed companies reached $77.3bn during the quarter compared to $65.7bn during Q1-2022, resulting in a quarter-on-quarter (q-o-q) growth of 17.6%. The year-on-year growth was even stronger at 62.6%.
Energy, banks and materials were the top three sectors by absolute profit growth compared to Q2-2021, accounting for almost 90% of total year-on-year growth in profits.
In terms of q-o-q growth, energy, materials and utilities were the top three sectors that more than compensated for the decline in profits for the diversified financial sector.
Saudi Aramco continued to be the biggest contributor to profit growth during the quarter. However, excluding Aramco, the growth in aggregate profits remained strong at 32.9% y-o-y and at 11.2% in terms of q-o-q growth.
In terms of regional trend, profit growth was seen across the seven exchanges during the quarter.
Total earnings for the Qatari-listed companies grew 41.2% y-o-y to $3.8bn during Q2-2022 with the banking sector reporting a profit growth of 11.1% to $1.9bn, which accounted for 48.6% of the overall exchange profits during the quarter.
The capital goods sector reported the third biggest earnings during the quarter at $845.4mn as compared to $592.1mn in Q2-2021.
The materials sector posted a net profit of $282.8mn in Q2-2022 compared to a net profit of $202.1mn the previous year period.
Net profit for the energy sector was seen improving 28.4% y-o-y to $182.7mn at the end of Q2, 2022.
Saudi Arabian-listed companies once again reported the biggest y-o-y growth during Q2-2022 with a net income growth of 70.4% followed by Abu Dhabi and Bahrain with 50.0% and 62.4% respectively.
