Supported by higher steel and chemical prices, Industries Qatar’s (IQ) earnings is projected to improve by 32 percent year-on-year in the first quarter of this year (Q1, 2017), at an estimated median of QR919m.
The earnings of QNB, QIIB, QIB and Qatar Electricity & Water are also estimated to increase on year-on-year for the first quarter, a consensus earnings estimate by SICO Investment Bank has noted.
The SICO analysts who covered a total of 155 listed companies in the GCC, including 13 Qatari companies, said the region’s earnings are estimated to increase 5 percent YoY and 22 percent on Quarter-on-Quarter basis, led by positive expectations on most GCC companies. The covered companies represent 72 percent of the total market capitalization.
In Qatar, estimates indicate marginal decline (-1 percent YoY) in overall Q1 of 2017 earnings. Saudi companies’ profits that SICO has estimates for, are expected to be increased by 8 percent, led by growth in petrochems. SABIC’s bottom line is estimated to grow by 59 percent. SAFCO is forecasted to report 33 percent higher and Yansab’s Q1 of 2017 net income is projected to be SAR642m (+60 percent).
On the other hand, aggregate Saudi banks earnings are forecasted to report lower YoY earnings (-5 percent), with earnings of SABB’s estimated to decrease 12 percent, Riyad Bank to decline 24 percent and NCB to report 3 percent lower earnings affected by higher provisioning.
UAE companies’ aggregate earnings are estimated to decline slightly YoY (-2 percent). Aldar’s Q1 of 2017 net income is expected to drop 22 percent, due to lower other income, and Damac is estimated to report Dirham788m net income, (-25 percent) due to absence of one-off of Dirham312m penal income accrued in Q1 of 2016, while on the positive note, Emaar’s bottom line is forecasted to grow 12 percent, on the back of acceleration in revenue recognition from properties under development and improvement in hospitality sector. UAE Banks will likely report better earnings (+9 percent) as ADCB’s net income is estimated to increase 5 percent, DIB is expected to improve 47 percent on strong balance sheet growth.
Kuwaiti companies’ earnings are forecasted to increase 16 percent. Analysts expect 14 percent growth in Kuwaiti Banks. NBK’ net income is estimated to increase 6 percent, KFH is estimated to gain 11 percent.
In Q1 of 2017, Omani companies’ results are expected to decline 16 percent, as Omantel is forecasted to report net income at OMR19m, compared to OMR35m reported a year ago. Also Ooredoo Oman’s Q1 of 2017 bottom line estimated to drop. Bank Muscat is expected to post OMR45m net income, up 2 percent. Bahraini companies’ 1Q17 earnings are expected to gain 9 percent. Alba is estimated to report robust 1Q17 earnings at BHD19m.
