Bahrain firms’ profits rise to $1bn

Profits for Bahrain-listed companies increased to nearly a $1 billion during the second quarter backed by gains in four key sectors, a new report says.

Kuwait-based Kamco’s GCC Corporate Earnings Report for Q2-2022 states total net profits for listed companies in the kingdom increased by 62.4 per cent year-on-year (y-o-y) to $943.3 million in Q2-2022.

The materials sector reported the biggest quarterly aggregate profits among sectors at the Bahrain Bourse.

Alba, the only company in the materials sector, reported Q2-2022 net profit of $482.6m registering 96.5pc y-o-y increase from its Q2-2021 net earnings which stood at $245.6m.

The aluminium smelter’s quarterly profits boost was mainly driven by higher LME prices.

In the banking sector, Ahli United Bank and National Bank of Bahrain posted robust Q2-2022 net profits pulling up the total net profits of the sector during the quarter which witnessed a 39.8pc overall increase to $353.2m.

AUB’s profits were underpinned by an increase in net interest income combined with a rise in fees and commission.

Meanwhile, National Bank of Bahrain reported a Q2-2022 net profit of $53m, a 34.2pc y-o-y rise from its Q2-2021 net profit of $39.5m.

NBB’s improved profitability was driven by strong business fundamentals supported by higher net interest income due to higher loan volumes in the group’s key segments.

The bank also attributed its improved quarterly profits to lower provisioning requirements as compared to the last corresponding period.

Total Q2-2022 net profits of the telecom sector improved by 11.4pc y-o-y to $56.3m. Profits for Batelco rose to $52.9m in Q2-2022 from $47.2m in Q2-2021.

Batelco’s profits were attributed to higher revenues underpinned by robust digital strategy.

Zain Bahrain posted smaller profits increase of 2.6pc to $3.4m from $3.3m during the same period of 2021.

In the diversified financials sector, total Q2-2022 net profit was $42.2m registering 57pc increase from $26.8m in Q2-2021.

Net profit of United Gulf Investment Corporation jumped more than nine times to $11.1m as compared to $1.2m in Q2-2021.

However, GFH Financial Group posted the largest Q2-2022 net profit in the sector, recording an earning of $23.1m up from $20.9m in Q2-2021.

On the other hand, aggregate net profits for the insurance sector fell 75.3pc during the quarter mainly due to Bahrain National Holding’s Q2-2022 loss of $5.7m down from a profit of $3.3m in Q2-2021 dragging down the total profits of the sector.

Total Q2-2022 net loss of the food, beverage and tobacco sector was $5.5m, as against a Q2-2021 net profit of $3.7m.

Both companies in the sector recorded a loss during the quarter.

Bahrain Flour Mills announced a net loss of $4m as against a profit of $3.5m in Q2-2021. The company attributed the loss to a decline in market valuation of equity investment.

Similarly, Delmon Poultry registered a Q2-2022 loss of $1.5m against a profit of $0.14m in the same quarter last year.

The company attributed the loss to a loss incurred by investment in an associate.

Meanwhile, for the GCC region as a whole, earnings reported by listed companies reached a new record level during the quarter backed by a broad-based growth in profits across sectors barring the financials and pharma sectors.

Aggregate net profit for GCC-listed companies reached $77.3bn during the quarter as compared to $65.7bn during Q1-2022 resulting in a quarter-on-quarter growth of 17.6pc.

The increase in profits of energy companies due to elevated oil prices around the $100/b level accounted for the bulk of the absolute increase in earnings in the region.

Strong consumer and business sentiment was seen in the region during the quarter despite a slowdown at the global level mainly due to higher inflation and the efforts by central banks to tame rising prices.

Source: https://www.gdnonline.com/Details/1141282/Bahrain-firms%E2%80%99-profits-rise-to-$1bn