DOHA: GCC Companies profits are expected to increase slightly by 2 percent year-on-year, while to stay flat on quarter-on-quarter. SICO Investment Bank in its third quarter consensus estimate of GCC listed companies noted Saudi Arabia’s Q3 results are estimated to contract by 4 percent YoY, whereas UAE’s earnings to improve 18 percent on a YoY basis .
The SICO analysts who covered a total of 141 companies, including 10 from Qatar, noted the region’s third quarter consensus earnings growth will be led byUAE.
In Qatar, estimates indicate 4 percent YoY decline in total third quarter earnings. Industries Qatar’s earnings are expected to be impacted by lower urea, steel and commodity chemical prices. Ooredoo is estimated to report weak earnings , due to depreciation from Myanmar Kyat, competition in Kuwait and higher finance cost.
Kuwaiti companies are expected to report 5 percent YoY growth in net income, with growth coming from banks. NBK’s net income is to increase 9 percent YoY, and KFH is estimated to report 13 percent higher net profit. In addition, Agility’s bottom line expected to improve 10 percent YoY, on the back of margin expansion from changing revenue mix.
In 3Q16, Omani companies’ results are forecasted to be 5 percent higher YoY. Bank Dhofar’s profit is expected to grow by 21 percent. Omantel’s earnings to increase slightly on year-on-year.
Bahraini companies’ 3Q16 earnings are expected to improve 3 percent YoY, as Alba profit is estimated to grow by 95 percent YoY reaching BHD 16.9mn on LME prices recovery. AUB’s net income is forecasted to fall by 8 percent YoY led by lower noninterest income.
Saudi Companies’ profits that SICO has estimated for, are expected to decline by 4 percent YoY, primarily on the back of lower petrochems’ earnings.
According to estimates, aggregate earnings for petrochemical companies are expected to decline by 4 percent, due to lower product prices and rising feedstock cost after lifting of energy subsidies.
SABIC’s bottom line forecasted to drop 11 percent YoY and SAFCO to fell 55 percent. On the positive side, aggregate Saudi banks’ results are expected to be 7 percent higher YoY, supported by NIM expansion.
Al Rajhi’s net income is expected to improve 19 percent and NCB’s profit is estimated to grow by+14 percent year-on-year.
In Saudi’s telecom sector, STC is estimated to report 7 percent lower net income YoY due to impact from MTR cut and finger print verification. ZAIN KSA is expected to book higher losses, while Mobily is expected to report a net income of SR 25m from the SR 158m net loss reported a year earlier.
UAE’s aggregate earnings are estimated to improve 18 percent YoY, mainly due to consensus’ expectations of strong profit growth from Emaar.
The real estate company’s bottom line is forecasted to grow by 43 percnet, on the back of higher revenue recognition from properties under development and finance income.
Etisalat is estimated to post 13 percent higher net income , helped by the absence of loss from Mobily and discontinued operations. UAE banks’ aggregate earnings expected to fall by 1 percent. ADCB is forecasted to report 9 percent year-on-year decline in net income and FGB earnings to contract 6 percent due to higher provisioning.
On the other hand, ENBD is estimated to post 15 percent higher profit year-on-year reaching Dh 1.92bn, supported by higher non-interest income and further decline in provisioning.
