26/07/2016 05:59 AST
Aamal Company, one of GCC’s fastest growing diversified companies, posted a net profit of QR305.5m for the first half of 2016 (H1, 16), up 23.5 percent, as compared to QR247.4m recorded at the end of the same period in 2015.
During H1, 2016, the company’s revenue rose marginally by 3 percent to QR1.39bn as compared to QR1.35bn in H1 of 2015. Earnings per share were up 17.1 per cent to QR0.41 as compared to QR0.35 during the corresponding period in 2015.
Net investment in capital expenditure rose by QR14.1m to QR60.1m as compared to QR46m earlier, reflecting fleet expansion at the company’s subsidiary, Aamal Maritime Transportation Services, and the ongoing Phase 2 redevelopment works at the City Center Doha shopping mall.
Sheikh Faisal bin Qassim Al Thani (pictured), Chairman of Aamal Company, said: “The first six months of this year have witnessed a tremendous performance with total net profits growing by over 23 percent compared to the corresponding period in 2015. The majority of this growth is derived from margin expansion within our Industrial Manufacturing division, which now makes up over 38 percent of the total company profits. As one of the leading industrial companies in Qatar, Aamal Company is well-positioned to be a direct beneficiary of the country’s infrastructure-led development programmes.
“Although our industrial focus has clearly been the company’s primary growth engine, the strong contributions made by our other three divisions should not be overlooked. All these businesses occupy leading market positions across the entire Qatari economy. As with our industrial manufacturing activities, we will continue to invest to sustain our momentum, either through strengthening our existing operations or pursuing new opportunities after careful consideration. Our low level of financial gearing, allied to strong free cash flow generation, clearly puts us in a very advantageous position.”
Overall revenues grew by 4.6 percent, which together with a significant improvement in the underlying margin and a strong net profit contribution from Aamal’s joint venture and associate interests, led to overall net profit rising by 91.8 percent to QR117m.
An outstanding performer during the first half of this year was Senyar Industries, as two of its operations (Doha Cables and El Sewedy Cables) continued to win profitable contracts, while maintaining a tight rein on costs.
Aamal Readymix also performed well, with its operating margin more than doubling due to higher sales prices being charged on new contracts; this degree of pricing power is viewed as being reflective of the business’s strong competitive position.
Further upside came from Ci-San Trading, which benefitted from its move into the marine transportation of aggregates in September 2015 and expansion of the fleet in the first quarter of this year.
Sheikh Mohamed bin Faisal Al Thani, Vice-Chairman of Aamal, said: “Aamal Company has performed very creditably in the first half of this year, notching up an impressive rise in total profits of over 23 per cent.”
Tarek M El Sayed, Managing Director of Aamal, said: “Aamal Company has many unique qualities that help us to stand out. These include our leading market positions across the entire Qatari economy, our proven track record in strategic asset allocation coupled with a clear focus on returns and value creation, and our balance sheet strength.”
The Peninsula
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