Aamal’s underlying net profit up 7.3% in 2016

16/03/2017 07:51 AST

Aamal Company yesterday announced 7.3 percent rise in its net profit before fair value gains on investment properties (“underlying net profit”) to QR559.3m for the year ended on December 31, 2016 against QR521.3m in 2015.

Net capital expenditure in cash terms rose by 10.5 percent to QR126.6m, reflecting the Phase 2 redevelopment works at the City Center Doha shopping mall and fleet expansion at Aamal Maritime Transportation Services.

“Aamal Company has performed admirably over the past twelve months with underlying profits before fair value gains on investment properties having increased by 7.3%. This has been driven by expansion in the overall margin despite the subdued oil price and the associated retrenchment in customer spending,” said Sheikh Faisal bin Qassim Al Thani, Chairman of Aamal Company.

“This is testament to the inherent qualities of our business model. First, the market leading positions that we currently occupy which lends us natural competitive advantages; and secondly, the offering of strength through diversity, so when one area of the business may experience a tightening in general business conditions, there will be others that should be able to more than compensate. As a consequence, I continue to look forward with much confidence as Qatar’s economy continues to grow, underpinned by the country’s Vision 2030 and infrastructure-led development programs,” he added.

Gross profit was up by 6.4 percent to QR683.4m in 2016 compared to QR642.1m in the previous year.

“Following this solid set of results and reflecting our strong financial position, and in line with always putting shareholders’ best interests first, the Board of Directors will recommend to the General Assembly the distribution of a cash dividend equal to 6 percent of the paid-up share capital, which is equivalent to QR0.60 a share. This is of course subject to approval at the Annual General Assembly Meeting which is due to take place on April 17, 2017,” said the Chairman.

Group revenue were marginally down by 1.8 percent to QR2.83bn in 2016 against QR2.88bn in 2015.

“Aamal has performed very well this year, managing to grow its underlying profits in the face of challenging market conditions. The Company has, by and large, has managed to insulate itself from these headwinds by first offering strength through diversity; and secondly, becoming increasingly geared towards large infrastructure projects, as illustrated by our Industrial Manufacturing division which now makes up over 35% of our net profit compared to 23% just 12 months previously,” said Sheikh Mohamed bin Faisal Al Thani, Vice Chairman and Managing Director of Aamal.

“Such infrastructure projects have on the whole been spared from any retrenchment as they represent the cornerstones of Qatar’s strategy to diversify away from being a predominantly hydrocarbon-based economy, as laid out in the country’s Vision 2030 development plan. This is why I believe Aamal is ideally positioned to reap the benefits from opportunities that will continue to emerge,” he added.

The Peninsula