Oman's listed companies' net profits jump 22% to $1bn in second quarter

04/09/2025 04:39 AST

Total net profits for listed companies in Oman rose by 21.7% year-on-year to reach $1bn in the second quarter of 2025, up from $847.6mn in the same quarter of 2024.

The growth was largely driven by the banking and utilities sectors, although ten out of fourteen sectors on the Muscat Stock Exchange reported year-on-year profit increases during Q2 2025, according to the GCC Corporate Earnings Report released by Kamco Investment.

For the first half of 2025, however, total net earnings of Muscat Stock Exchange-listed companies remained largely stable at $1.8bn, unchanged from the same period last year.

The banking sector, the largest by market capitalisation on the Muscat Stock Exchange, saw total Q2 2025 earnings rise by 10.5% to $362.8mn from $328.3mn in Q2 2024. For H1 2025, net profits for the sector increased by 7.8% year-on-year to $702.8mn, up from $651.8mn in 2024.

Net profits for the utilities sector surged by 53.8% year-on-year to $151.7mn in Q2 2025, compared with $98.6mn in Q2 2024. For the first half of 2025, total net profits for utilities improved 56.3% year-on-year to $149.3mn from $95.6mn in H1 2024.

The telecom sector also posted strong growth, with Q2 2025 net profits rising 22.4% to $54.3mn from $44.4mn in Q2 2024.

GCC earnings sharply decline in Q2

Oman's listed companies outperformed most other stock exchanges in the GCC in Q2 2025.

Aggregate net profits for companies listed on GCC exchanges fell 8.7% year-on-year to $56.7bn in Q2 2025, down from $62.1bn in Q2 2024, and declined 3.4% sequentially compared with Q1 2025.

'The decline in Q2 2025 was primarily driven by a sharp fall in crude oil prices, which impacted energy sector profits across the region. Softer global petrochemical prices also weighed on the profitability of basic materials companies. However, strong economic fundamentals and a resilient non-oil manufacturing sector helped offset some of this decline,' the report said.

At the country level, the change in profitability was mixed, with three exchanges reporting a decline in net profits, while the remaining four recorded growth. Saudi Arabia registered the largest absolute drop, with net profits falling $6.3bn to $33.04bn from $39.4bn in Q2 2024. Kuwait followed, with net profits declining more than a quarter, or $0.6bn, to $1.65bn.

Dubai-listed companies saw net profits fall 5.7% year-on-year to $6.5bn in Q2 2025, while Abu Dhabi-listed firms recorded the largest profit growth, rising $1.6bn to $10.3bn. Oman and Qatar followed with net profits of $1bn and $3.6bn, respectively.

Sector-wise, most GCC sectors posted higher year-on-year profits in Q2 2025, including major sectors such as F&B, real estate, utilities, and telecom, which reported healthy double-digit profit growth.

Banks across the GCC achieved strong growth, with net profits rising 10.3% to $16.6bn in Q2 2025. However, these gains were outweighed by declines in the energy and basic materials sectors, as well as transportation, capital goods, and media & entertainment.

For H1 2025, aggregate net profits for GCC-listed companies fell 3.4% year-on-year to $115.4bn. The decline was mainly due to lower profits in Saudi Arabia and Kuwait, while other countries recorded growth. Oman and Abu Dhabi reported double-digit profit increases, while Qatar and Dubai saw moderate growth of 2.3% and 2.4%, respectively.

Listed banks in the GCC reached a record high in Q2 2025, with net profits of $16.6bn, supported by higher earnings in six out of seven country aggregates in the region.