(The Group’s Comments) Al Khaleej Takaful Net Profits Up to QR 20.27 MN in 2018

Ø  Profits: The Company recorded a net profit of QR 20.27 million for the year 2018, compared to QR 194,000 in 2017. Earnings per share reached QR 0.79 versus QR0.01 for the previous year, while the net profits for the fourth quarter of 2018 amounted to QR 11.22 million, compared to a net loss of QR 16.44 million in the corresponding period of 2017. This significant improvement in profits is due to a settlement agreement with one of the related parties whereby the company will receive QR 146 million paid in four payments beginning end of March 2019 and ending by the end of 2020. The settlement agreement had a noticeable impact on the company's data for the year 2018. It is worth noting that Qatar Central Bank Issued a resolution to dissolve the Al Khaleej Takaful Insurance board of directors and appoint a new board and CEO to the company for a period of one year extendable.

 

Ø  Revenues: Total investment and other income increased by about 35% to reach QR 129.76 million, compared to QR 96.26 million in 2017. Investment profits at fair value through equity climbed to QR 41.00 million versus to QR 28.68 million at the end of 2017, while revenues from rents amounted to QR 16.92 million.

 

Ø  Expenses: The Company’s total expenses amounted to QR 109.22 million at the end of 2018, compared to QR 95.98 million for the previous year, an increase of 14%. Most of the increase is due to higher administrative and general expenses and depreciation.

 

Ø  Dividend distribution: The Board of Directors recommended the General Assembly to distribute 5.0% of the nominal value of capital (4.48% dividend yield) as cash dividend for 2018, which is the same as the distribution rate for 2017.

 

Ø  Market ratios: The stock is currently traded at a PE multiple of 14.13 times and a book value multiple of 0.55 times.