The Group Securities: Weekly Report on QSE Performance, 23-27 April 2017

This week marked the end of the release of the Q1 financials of 2017. In fact, 36 companies disclosed their financials, 18 of which disclosed their results during this week. Most of the results were negative and marked a remarkable decline in profit compared to the same period last year. Except for a few companies, like Qatari Investors and Medicare, the result of 36 companies showed a decline of 4.65% to QR 9.4 billion. In light of these conditions-- with oil prices sliding to 48.90 dollar-- the limited recovery of the market trading volume failed to hold up the fall of prices and indices. General Index dropped by 152 points to the level of 10090 points. 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--Qatari Investors Group net profit in the first quarter of 2017 rose 9.3% to QR 115.7 million. Expenditure stood at QR 25.9 million. Net operating profit increased by 11.4% to QR 91.6 million. After subtracting the net financing cost, which fell 18.3% to QR10.7 million, and adding a stake of other companies' profits, the company's net profit rose 13.4% to QR 84.9 million.

2-- Qatar Gas Transport total income increased by 3.1% to QR 877.5 million in the first quarter of 2017, including QR 752.6 million as revenues of ship operations, and QR 83.8 million from joint projects.  Total expenses increased by 3.2% to QR 686.2 million, including 170.8 million as operational expenses; QR 189.6 provision of depreciation; QR 293.1 million as financing cost.  As result, the profit posted in this period dropped by 20.4% to 191 million. Comprehensive income stood at QR 194.7 million, compared to total loss in the same period last year worth QR 455.1 million.

3--  Masraf Al Rayan's total revenue in the first quarter increased by 8.1% to QR 1013.7 million, of which QR 896.8 million was income from finance and investment. Expenses rose by 9.1% to QR 227 million, of which QR 82.4 million was staff expense. Depositors' share of profits rose by 45.1% to QR 273.7 million, noting that the balance of deposits rose by 11.8% to QR 55.7 billion in the same period. As a result, net profit for the period decreased by 6.5% to QR 510.3 million.

4-- Milaha operating income for the first quarter decreased by 15.6% to QR 648 million while expenses decreased by 9.5% to QR 463 million. As a result, operating profit decreased by 26.6% to QR 185 million. After adding profits from other companies and deducting the net financing cost, the net profit is down 33% to QR 236.2 million. Total losses on available investments shrank to QR 49.5 million compared to QR 389.1 million in the corresponding period last year making the overall income improve to a profit of QR 186.8 million compared to a comprehensive loss of QR 37.2 million in the corresponding period in 2016.

5-- Qatar Cement's total income from cement sales dropped by 27.2% to QR83.9 million as result of sales decline and rise of production cost. Adding other sources of income, deducting routine expenses worth QR 10.8 million, then net profit falls by 31.5% to QR 84.8 million. Comprehensive income declined to 78.3 million.

6-- Qatar General Insurance & Reinsurance's total income increased by 4.2% to QR145.9 million in the first quarter of 2017. Other sources of income increased to 100.9 million, while net premiums dropped slightly to 45 million. Total expense increased by 22.4% to 106.5 million, including QR29.5 million net claims, QR 43.7 million as public and administrative expenses. As result, net profit posted in this period fell by 50% to QR43 million. Comprehensive income loss shrunk by half in respect of investment available for sale and currencies exchange rate; comprehensive income increased by 28.9% to 25.4 million.

7-- Ooredoo's revenues reached QR8 billion in the first quarter of 2017, compared to QR 7.9 billion in the same period last year. Total income hit QR 7.18 billion, including QR 2.95 billion operational expenses, QR 1.7 billion sale expenses, QR 2.1 billion depreciation expenses, QR 433 million net financing cost. Adding other sources of income worth QR71 million, shares from associate companies worth QR11.3 million, deducting taxes worth QR 148.3 million, then profit attributable to shareholders drops by third to QR 584 million. There was a positive change in the currencies exchange rate which pushed the comprehensive income attributable to shareholders to QR 872.5 million, though still below that of the same period last year at QR 1397.6 million.

8-- Qatar German Medical Devices' total income from its business and other sources dropped by 33% to QR 880.200 in the first quarter of 2017.  Total expense dropped by 8.6% to QR 2.08 million. Financing cost fell slightly to QR 1.01 million. As result, net loss increased by 7.5% to 2.20 million.

9-- Widam Food Company's loss on meat sales dropped by 21.8% to QR40.6 million. The government subsidy fell by 7.6% to QR74.6 million. In contrast, public and administrative expenses increased by 37.2% to QR 12.9 million. As result, net profit posted in this period rose by 16% to QR 22.95 million.

10-- Mazaya Qatar profit from building dropped in the first quarter 2017 to QR 10.3 million shrinking its total revenue by the rate of 54.4% to QR 17 million. The company’s expenses rose by 20% to QR 3.6 million   and the cost of financing increased by 16% to QR 8.4 million. As a result, net profit shrank to less than a fifth, reaching to about QR 5.02 million.

 11-- Qatar First Bank revenue in the first quarter 2017 fell 8.1% to QR 121.5 million, of which QR 89.7 million was non-bank income. Total expenses decreased by 12.9% to QR 129.2 million, of which QR 89.3 were non-banking expenses, QR 17.8 million were for employees and QR 13.4 million were other operating expenses. As a result, net loss in the first quarter decreased by 51.2% to QR 9.56 million.

12-- Total profit for Woqod from its direct activity in the first quarter decreased by 7.7% to QR 293.1 million. The decrease resulted from higher cost than sales value. Other income rose by 10.4% to QR 301.4 million, while expenses rose by 20% to QR 389.7 million. As a result, net profit attributable to shareholders decreased by 27.3% to QR 176.5 million

13-- Dlala Brokerage and Investment Holding disclosed its reviewed financial statements for the period ended on 31.03.2017. The statements shows that the net profit is QR 10.1 million compared to net profit amounting to QR 445 thousand for the same period of the previous year. The Earnings per Share (EPS) amounted to QR 0.36 for the period ended March 31, 2017 to EPS amounted to QR 0.02 for the same period of the previous year.

14-- Al Meera Consumer Goods Company disclosed the interim financial statement for the three months ended 31 March 2017. The statements show that the net profit is QR 40,516,263 compared to net profit amounting to QR 49,403,900 For the same period of the previous year.

The Earnings per Share (EPS) amounted to QR 2.03 For the period ended 31 March 2017 to EPS amounted to QR 2.47 for the same period of the previous year.

Economic Developments

1-- Banks consolidated balance sheet for March has been released; it shows a rise in total assets by about QR 18.1 billion to stand at QR 1282.5 billion.  The total domestic public debt, including bonds, decreased by about QR 13 billion to QR 423.9 billion, while the total domestic private sector deposits increased by QR 0.5 billion to the level of QR 439 billion.

2-- Last week, Opec oil prices lost around 1.58 dollars and closed at $ 48.90 per barrel on Thursday.

3-- Last week, Dow Jones index gained 393 points to reach the level of 20941 points. US Dollar exchange rate increased to the level of 111.52 yen, and $ 1.09 per Euro. Gold price decreased by 18 dollars to the level of $ 1269.5 per ounce.