(The Group’s Comments) Qatar Electricity & Water Co. Net Profit Down to QR309 Million in Q1 2019

April 15, 2019

Profits: Qatar Electricity & Water Company (QEWC) reported its profits for the first quarter of 2019, which amounted to QR 309 million, a decrease of 21.6%, compared to QR 394 million for the same period last year. QEWC’s earnings per share reached QR 2.81, versus QR 3.59 for the corresponding period of 2018. It should be noted that the profits of 2018 fourth quarter amounted to QR 380.2 million.

The reasons for the decline in net profits can be summarized as follows:

1.      Operating income decreased by 18.26% to QR 539.39 million, compared to QR 659.9 million for the first quarter of 2018, due to lower sales and maintenance revenues by more than QR 82 million.

2.      The Company's share of profits and dividends in companies it invests in decreased by more than QR 31 million.

3.      The cost of financing and administrative expenses decreased by QR 16 million to QR 63.7 million compared to QR 47.8 million for the corresponding period of 2018.

On the other hand, other revenues increased by QR 38 million due to higher interest income and profit on disposal of certain assets.

Comprehensive income: During the first quarter of 2019, the company recorded a loss of financial assets of about QR 371.3 million against a profit of QR 454.7 million.