Corporate Earnings

Kuwait and GCC Blue Chip Earnings

Kuwait Earnings November saw a number of blue chip companies in Kuwait and GCC declare their financial results for the third quarter (Q3) of 2020. The earnings of Kuwaiti blue chip companies saw a decrease in Q3-2020 compared to that of the same period in 2019 as seen from the exhibit below. Exhibit 1: Q3 earnings of top 5 Kuwaiti companies by Market Capitalisation Source: Boursa Kuwait; Reuters; Data as of November 29, 2020 Commentary: National Bank of Kuwait: Net...

GCC corporate earnings awaits a turnaround in 2017

Effect of lower oil prices and their impact on non-oil sectors was evident in the earnings performance of H2, 2016. Key sectors such as banking, telecom, real estate and construction all witnessed a fall in earnings. Banking and Telecom sector’s earnings declined by 7% and 29% during H2 2016 on a YoY basis. Poor performance of the former was due to tight credit and weak economic conditions, while the latter suffered from subdued performance of foreign subsidiaries, increased regulatory costs...

GCC Corporate Earnings fall by 8% in First half of 2016. Expected to fall by 4% in 2016

Total earnings in 1H16 came in at USD 32.8 billion, partly supported by telecom and financial services sector. Among sectors, telecommunications and financial services posted positive earnings growth, as contribution from international markets and favorable exchange movements supported their bottom line. Earnings in banking sector remained flat while earnings in commodities, real estate and construction related sectors contracted as the fall in oil prices is increasingly felt across non-oil sectors. Blue chips fared relatively better, while earnings of mid-cap and...

What are the GCC region’s high margin industries?

Corporate profits and net margins at an aggregate level have been on a clear downward trend but the aggregate profit margin conceals diverging performances between the different sectors. Profit margins in sectors such as basic materials, industrials, energy, utilities and telecommunication services have been affected by various factors. Subdued activity in the infrastructure space, softening real estate activity and a prolonged working capital cycle have eroded margins for contractors and construction material providers. For firms operating in the energy and...