(The Group’s Comments) Al Khaleej Takaful
Net Profits Up to QR 20.27 MN in 2018
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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.
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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.
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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.
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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.
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Market ratios: The stock is currently traded at a PE multiple of 14.13 times and a
book value multiple of 0.55 times.
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