12/07/2015 05:05 AST
The financial results announced by some of the leading companies in the MSM 30 Index show a downtrend in their earnings in the second quarter of the current year compared to 2014. Analysts find several reasons for the fall including fluctuating oil prices, cost increase due to natural gas price hike and geopolitical developments. “While top line growth has not been visible owing to factors such as unfavourable demand and competition, some companies suffered losses due to production problems”, said an analyst with a leading brokerage firm.
The net profit of Oman Cement declined significantly to RO 5.443 million for the period ended June 30, 2015 compared to RO 9.09 million in the same period last year.
In June, Oman Cement had disclosed that it had taken up one of its kiln with 4000 TPD clinker production capacity for a planned maintenance activity which was to be completed during early June. However due to operational difficulties it had to prolong the shut down.
The company encountered a sales loss of around 160,000 MTS due to which the earnings during the quarter took a massive hit.
The net income of Al Anwar Ceramics, a gas-based company, fell to RO 3.96 million for the quarter compared to RO 4.26 million in the same period previous year.
Meanwhile, a research report by Gulf Baader Capital Market (GBCM) estimated that the revenues of Muscat Securities Market (MSM) Index companies, including investment holding firms, would be at around RO 879.29 million for the second quarter of the current year.
This, according to the report, is thanks to a decline of 2.7 per cent on a year-on-year basis and 3.4 per cent on a quarter-on-quarter basis. “The decline in share prices on the MSM has affected the portfolio investment income of all companies”, they said in their research note. Earnings of these companies in the second quarter are anticipated to reach RO 163.02 million, a decline of 8.4 per cent year-on-year.
At the same time, the total income of the companies, excluding holding firms, is projected to fall 2.7 per cent to RO 846.49 million for the three-month period, on a year-on-year basis.
However, the fall in income is reported to be 1.6 per cent, when revenues are compared to the previous quarter.
The net profit of Salalah Port, according to its disclosure note to MSM, declined by 15.7 per cent year on year to RO 2.683 million compared to RO 3.18 million a year ago.
The throughput in containers declined significantly by 24.3 year on year to 1.232 million TEU’s.
Oman Chlorine said its net income came down to RO 1.23 million for the six months ended June 30, 2015 compared to RO 1.33 million in the same period last year, while Al Omaniya Financial Services said its net income reached RO 3.1 million for the quarter RO 2.9 million in the same period previous year.
A’Saffa Foods in its disclosure note to the MSM said the company’s net income stood at RO 3.37 million for the period ended June 30, 2015 compared to RO 3.68 million in the same period previous year.
At the same time, National Finance has reported a net income of RO 2.77 million for the period ended compared to RO 2.44 million in the same period before.
While Al Sharqia Investments reported net income of RO 731,000 for the quarter ended 30th June 2015 compared to RO 799,000 in the same period previous year, Packaging Company reported 1H15 net profit of RO 231,000 as compared to RO 18,000 a year ago.
Oman Daily Observer
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