Omani listed firms post OMR517m net profit

Muscat: Oman’s listed companies posted net earnings of OMR517.4 million in 2017, down by 18.6 per cent from the previous year's OMR635.79 million, according to an estimate by Ubhar Capital (U Capital). This, however, excluded Oman Telecommunications Company (Omantel), which is yet to announce its financial results for last year.
Among different sectors, the financial sector’s profitability saw the lowest drop of 3.3 per cent to OMR407.6 million, of which 82.6 per cent belonged to the banking sub-sector. The services sector results, excluding Omantel, witnessed a drop of 43.5 per cent to OMR84.4 million.
“More than half of this fall has been caused by the energy sector, as the company results were impacted by adjustments to deferred taxes due to a rise in the tax rate,” said the detailed report on net earnings.
The industrial sector results were also down by 61 per cent to OMR25.3 million, impacted by the results of cement companies Al Hassan Engineering and Oman Cables Industry Co.
According to earlier market reports, corporate earnings were under pressure amid an increase in corporate income tax, removal of subsidy on fuel, and a rise in utility charges. The Muscat Securities Market (MSM) has some 130 listed companies.
U Capital further said that in 2017, 68 companies announced cash dividends for 2016; 15 companies gave stock dividends; and seven companies went for a stock split. Total cash dividend paid by the companies for 2016 amounted to OMR415.2 million, resulting in a cash dividend payout of 50.8 per cent, when compared with the net profit of cash dividend-paying companies.
“Assuming most of the companies maintain the same dividend payout paid on 2016 earnings, in 2017, and adjusting for those that have already announced their proposed dividends, the total payout of companies will amount to OMR366.5 million, which is a dividend payout of 53.2 per cent on 2017 earnings,” the report added.
According to the Muscat Securities Market and U Capital database, total distributed stock dividend in 2017 for the year 2016 reached 651.3 million shares, worth OMR69.63 million. “For 2018, however, we estimate a total of 776.3 million shares, worth OMR77.8 million or an increase of 12 per cent on an annual basis, to be distributed for 2017. In 2017, 15 companies announced stock dividends, while this year, so far, seven companies have already proposed the dividend,” the report said.