(The Group’s Comments) QEWC Net Profit Drops 18% to QAR 950 Million Q3 2019

 

Ø  Profits: net profit declined by 17.8% or QAR 206.2 million for the first nine months of 2019 to about QAR 950.2 million, compared to QR 1156.4 million for the same period last year, while the company’s earnings per share reached QAR 0.86 versus QAR 1.05 for the corresponding period of 2018. As for the third quarter, the company posted profits of about QAR 310.9 million compared to QAR 330.7 million, compared to 343.8 million for the same period of the previous year.

 

Ø  Water & Electricity Revenues: decreased by 11.8% or QAR 227 million, down to QAR 1,688.7 million. Separately, revenues from electricity declined by 21.4% or QAR 206.4 million, while water revenues dropped by 2.2%, which represents QAR 20.6 million.

 

Ø  Revenue Costs: despite the decline in revenues as seen above, the cost of revenues increased by 3.3% and amounted to approximately QAR 36 million due to the newly imposed increase in the cost of gas under the new agreement, which led to a drop in the gross profit to QAR 650.0 million, from QAR 916.7 million.

 

Ø  Share of the Results of Joint Ventures: This item represents the company's investments in several energy projects such as Umm Al Houl, Nebras, Ras Girtas Power, Mesaieed and Siraj Energy. The company's share of the profits of these projects increased by QAR 92.0 million or 24% to reach QAR 474.7 million.

 

Ø  Comprehensive Income: the company posted valuation losses in the statement of comprehensive income of about QAR 1,191.3 million, compared to profits for the same period in 2018 of about QAR 1,071.3 million, most of the recorded losses represent the company's share of losses of joint ventures.