(The Group’s Comments) Ezdan Net Profit Drops by 74% to QR 433.74 Million in 2018

Ø  Profit: Ezdan Holding Group’s profits plummeted by a disastrous 74.3% to a measly QR433.75 million in 2018, compared to QR 1,693.2 million recorded in the previous year. The company’s earnings per share reached QR0.16 versus QR0.64 for 2017. In the fourth quarter of 2018, Ezdan ended up with a loss of QR29.73 million, compared to profits of QR280 million for the corresponding period of 2017.

The decline in profits at this magnitude was due primarily to non-recurring profits in the results of 2017 worth about QR678 million.

Ø  Comprehensive income: The total comprehensive income at the end of 2018 amounted to QR 1,287.1 million. The comprehensive income for the year included an investment profit of QR 853.4 million as a result of the implementation of Standard No. 9. The results of 2017 included an assessment loss of QR314.05 million.

Ø  Revenues: Operating income for the year 2018 decreased by 8.4% to reach QR 1,067.2 million compared to QR 1,165.0 million for the previous year due to a decrease of 11% in rental income. Operating profit dropped by 34% due to non-recurring profits as mentioned above. The operating profit for the year 2018 amounted to about QR 1,293.3 million compared to QR 1,962.6 million for the previous year.

Ø  Dividends: The Board of Directors recommended not to distribute any profits for 2018, noting that the company did not distribute dividends for 2017 and the last dividend of 2016 was 5.0%.

Ø  Market ratios: The share is currently traded at a PE multiple of 75 times and a book value multiple of 1.02 times.