Major Omani firms expected to post fall in profits, revenues

06/07/2015 07:36 AST

The major Omani companies that constitute the MSM 30 Index are likely to post a fall in revenues for the second quarter of this year, along with a dip in net earnings, as compared to the same period in 2014.

Revenues among Muscat Securities Market (MSM) Index companies, including investment holding firms, are estimated at OMR879.29 million for the second quarter of this year, 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 Gulf Baader Capital Markets reported in a research note on Sunday.

This decline is mainly due to the sluggish trend on the MSM in the second quarter. The decline in share prices on the MSM has affected the portfolio investment income of all companies.

Earnings of these companies in the second quarter are anticipated to reach OMR163.02 million, a decline of 8.4 per cent year-on-year. An anticipated fall in earnings is due to dismal earnings estimate from banks, investment holding companies and certain industry and services sector majors.

The total income of MSM 30 Index companies, excluding holding firms, is projected to fall 2.7 per cent to OMR846.49 million for the three-month period,on a year-on-year basis. However, the fall in income is reported to be1.6 per cent, when revenues are compared to the previous quarter.

Further, the earnings of MSM 30 companies, excluding investment holding firms, are expected to fall by 8.2 per cent to OMR152.2 million, according to Gulf Baader Capital Markets.

Meanwhile, banking sector revenues are estimated to fall by 1.1 per cent on a year-on-year basis, and 0.9 per cent on a quarter-on-quarter basis. Also, earnings are set to decline by 4.1 per cent year-on-year and 1.4 per cent quarter-on-quarter. Banking sector credit addition was estimated at OMR700 million in the second quarter, an increase of 4 per cent on a quarter-on-quarter basis.

For the second quarter, the investment holding firms are anticipated to report a significant decline in revenue, reaching 4.3 per cent year-on-year,owing to range bound equity market performances both in the local and regional markets. Additionally, earnings of investment holding companies are estimated to dip by 10.7 per cent year-on-year.

Times of Oman