The number of listed companies that officially published their results for the first half of the year was 176 companies, 91.2% of the total number of 193 listed companies, after excluding the deleted and suspended companies from trading and those with different financial statements dates ,said a recent report released by AlShall consulting .
The companies’ profits scored KD 913.7 million, which are lower by -4.8% than the profits for the first half of 2013 in the amount of KD 959.5 million, but in reality are higher by 1.6% after excluding the non-recurring profits of Ahli United Bank (Bahrain brunch) of about KD 60.5 million in 2013. The figure still below by 15.9% compare to the profits of the first quarter of this year, an indicators that needs follow up in the next two forthcoming quarters of the year.
Five sectors, out of 12 active sectors, achieved rise in their profitability compared with their performance in the first half of 2013. The highest was the banks sector which increased its profits from KD 391.1 million to KD 401.4 million. The most retreating was the real estate sector that declined from KD 107.8 million to around KD 79.2 million.
Results of the first half of this year indicate that the top 10 companies in achieving absolute profits contributed about KD 564.1 million, or %61.7 of total absolute profits. Their contribution to the overall growth in profits vis-a-vis the first half of 2013 was approximately KD 41.1 million, the National Bank of Kuwait (NBK)achieved the highest absolute profit by about KD 144.8 million. Zain came next by about KD 114.7 million. On the contrary, the top 10 companies that achieved the highest absolute losses recorded KD -41.4 million. Al Madina for Finance and Investment Company achieved the highest absolute loss by about KD 9.9 million, followed by “Kuwait Syrian Holding Company by approximately KD 7.1 million.
102 companies improved their performance with 93 companies were gainers and 9 companies reduced their losses or shifted to profitability. In other words, about 58% of the companies which announced their results achieved better performance. 74 companies had lower performance, 64 companies among them with lower profit level while 10 companies became losers. The attached table explains profit details according to sector.
In General, corporate profit growth appears to be modest, but under the geopolitical conditions, regional and local, coupled with the comparative weak performance of Kuwait stock exchange market, the positive trend in profitability albeit low might be acceptable.
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