|
Net Profit of Qatar-Oman Investment Dropped
by 53% to QAR 4.38 Million in 2018
First, it should be noted that the
auditor's report included a conservative opinion, since the
company failed to comply with the International Accounting
Standards for the valuation process relating to its investment
in its associate (Mizin Oman), which may substantially affect
the company's financial position.
Ø
Profits: 2018 profits fell by 53% to about QR4.38 million, compared to
QR9.33 million in the previous year, while the earnings per
share recorded QR0.14, versus QR0.30 in 2017. As for the fourth
quarter of 2018, the company recorded a loss of about QR 790,000
compared to a loss of QR1.22 million for the corresponding
period of 2017.
Ø
Comprehensive income: The total
comprehensive income by the end of 2018 amounted to QR27.1
million due to profits of QR 22.72 million generated by
revaluation of financial assets, while in 2017 the company
recorded evaluation losses of about QR 24.47 million.
Ø
Revenues: in 2018, net operating revenues decreased
by 35.3%, as revenues from financial assets decreased from Q13.1
million in 2017 to QR 8.1 million by the end of 2018. Interest
income and realized profits on sale of financial assets
witnessed significant declines, which led to this drop. The
company’s financial statements show a revaluation loss of QR
250,000 representing the impairment in the fair value of its
investment in associates (Mizin Oman Real Estate Development
Company, registered in Oman and owns a commercial complex and
hotel).
Ø
Shareholders' equity: increased
by 4.0% by the end of 2018, compared to the previous year
despite the decline in profits. The company reduced its losses
from the valuation of its financial investments by the end of
2018 by QR 23.0 million, which led to an increase of
shareholders' equity to reach QR 287.9 million compared to QR
276.8 million. The return on shareholders' equity reached 1.52%,
versus 3.37% for the year 2017, with a book value of the share
at QR 9.20.
Ø
Market ratios: The stock
is traded at a PE multiple of 42 times, while the value of the
book is 0.64 times
The Board of Directors recommended a cash dividend of 3% of the
nominal value of the share, equivalent to QR0.30 per share (5%
dividend yield).
|