The Group Securities: Weekly Report on QSE Performance,
29 Jan-02 Feb 2017
Over the last week, six companies released
their financial results, namely Vodafone,
Doha Insurance, Widam, Water & Electricity
Company, and Qatar Industries.
Broadly speaking, the results were
weak and dividends were less than the
expectations. This fact spurred the share
prices to go down for all sectors. Total
trading volume dropped by 26.9% to the level
of QR 997.9 million. General index declined
by 419 points or 3.82% to the level of 10570
points. All sectors indices declined, namely
telecommunications, insurance, banks, real
estates. Total capitalization dropped by
20.4 million to the level of QR568 billion.
Earnings per share ratio fell to 14.38.
During this week, 39 companies had their
share price down, as against 4 companies
whose share price remained up. Foreign
portfolios exclusively dominated the net
sale transactions, against all other
categories of investors. The Group reviews
QSE performance in this week with
illustrative charts combined with corporate
business news, and a list of the affecting
economic factors.
Corporate News:
1--Dlala Brokerage and Investment Holding's
net profit hit QR 3.8 Million compared to
net loss amounting to QR 41.97 million for
the same period of the previous year. EPS
amounted to QR 0.13 compared to QR 1.48 loss
for the same period of the previous year.
Dlala's net operational income dropped by
1.3% to QR 27.4 million in 2016, including
QR 21.5 million as net brokerage revenues
and commissions, and QR 4.3 million as
properties revenues.
Public and administrative expenses
dropped by 8% to QR 24.2 million. As result,
the company posted a net profit worth QR3.8
million, compared to net loss worth 41.97
million in 2015. The company incurred losses
as result of a negative change in the fair
value of investments available for sales,
thus turning the comprehensive income into a
total loss worth QR 6.2 million, compared to
total loss worth QR 29.2 million in the
previous year.
2-- Vodafone Qatar net loss in the nine
months amounted to QR 195 million compared
to a net loss of QR 285.7 million in the
corresponding period last year. Loss per
share stood at QR 0.23 versus QR 0.3 in the
corresponding period of the previous year.
Vodafone Qatar revenue in the nine months
fell 3.9% to QR 1541 million and operating
expenses amounted to QR 1135.3 million and
the net operating income rose 18.3% to QR
405.7 million. After deducting depreciation
and amortization expenses worth QR 581.4
million, the company's operating loss
reduced by 35.3% to QR 175.8 million. After
the addition of other items, the loss rises
to QR 195 million, down 31.7% of loss in the
corresponding period of the previous year.
3-- Doha Insurance net profit reached QR72.2
million for the fiscal year 2016, compared
to QR 111 million in
2015. EPS amounted to QR 1.44
compared to QR 2.22 for the period last
year. The Board of Directors has also
proposed a cash dividend of QR 0.60 per
share. Doha Insurance's net revenues from
insurance subscription increased by 2% to QR
86.5 million in 2016. Investments revenues
and other sources dropped by 46.2% to QR62.4
million. In contrast, total expenses
declined by 11% to QR75.9 million. As
result, the company's net profit dropped by
35% to QR72.2 million. The company incurred
losses worth QR21.5 million; hence the
comprehensive income dropped to QR50.8
million.
4-- Widam Food Company net profit in 2016
amounted to about QR 91.29 million compared
to QR
69.14 million in the corresponding
period last year.
Earnings per share stood at QR 5.07
versus QR 3.84 in the corresponding period
in 2015. The Board of Directors proposed a
cash dividend of QR 3.5 per share. Widam
Food Company operating losses in 2016
decreased 22% to QR 209.8 million and it
obtained
Government support of QR 341 million
in meat price, down 8.5% from government
support provided last year.
General and administrative expenses
increased by 14.3% to QR 41.6 million. As a
result, net profit for the year rose by
32.1% to QR 91.3 million and the
comprehensive income amounted to QR 85.4
million due to currency differences losses.
5-- Qatar Electricity and Water Company's
net profit is QR 1,542 million compared to
QR1,501million for the same period of the
previous year. EPS amounted to QR 14
compared to QR 13.64 for the same period of
the previous year. The Board recommended the
distribution of QR 7.5 cash dividends to
shareholders. Qatar Electricity and Water
Company's net operational income increased
by 7.7% to QR1.4 billion in 2016. Total
expenses rose by 15.9% to QR105 million.
Adding the company's share of profit
from associate companies, deducting
financing cost, then the company’s net
profit rises by 2.5% to QR1573.3 million.
There was a positive change in the fair
value worth QR 246.5 million, thus pushing
comprehensive income up to QR 1819.9
million.
6-- Industries Qatar net profit amounted to
QR2,955.0 million compared to QR4,468.7
million for the same period of the previous
year.
Earnings per Share(EPS) amounted to QR4.88
for the period ended December 31, 2016
compared to EPS amounted to QR7.39 for the
same period of the previous year. The Board of Directors of the company recommended a
dividend of QR 4 per share for the period.
Economic
Developments
1--In December 2016, the foreign merchandise
trade balance, which represents the
difference between total exports and
imports, showed a surplus of QR10.7bn, an
increase of about QR1.9bn or 21.7 percent
compared to December 2015; and increased by
nearly QR1.0bn or 10.7 percent compared to
November 2016.
2-- Banks consolidated balance sheet for
December was released showing a rise in
total assets compared to November by about
QR 70 billion to stand at QR 1271 billion.
The total domestic public debt,
including bonds, increased by about QR 30
billion to QR 428 billion while the total
domestic private sector deposits rose by QR
4.5 billion to the level of QR 438 billion.
3-- Last week, Opec oil prices hovered
around $ 52 per barrel until Thursday when
it hit $ 52.67.
4—As far as US economy, nonfarm payrolls
grew by 227,000 in January2017, while the
unemployment rate edged higher to 4.8
percent. Dow Jones index lost 210 points to
reach the level of 19885 points. US Dollar
exchange rate remained steady at the level
of 115.13 yen, and $ 1.08 per Euro. Gold
price increased by 25 dollars to the level
of $ 1216 per ounce.