R$1.2 billion in profits from public contributors listed on a projected stock exchange

The story in brief

Oman: The net profits of public contributors included in a projected stock exchange in the first half of the current year have risen to about 1.2 billion Omani rials, compared with 949.8 million Omani rials in the same period last year, recorded growth of 26 per cent. Preliminary financial results announced by public contributors indicated a number of positive figures, benefiting from the tendency of companies to increase their operational efficiency, control costs, diversify their products and services, improve productivity, increase government spending, increase the average price of Oman oil and improve economic activity, thus providing an economic and financial environment in support of the activities of banks, financial and industrial companies and companies operating in the service sector. The first half of the current year saw a rise in the number of companies with profits to 82, compared with 80 companies with profits in the first half of last year, while the number of companies with losses decreased from 14 to 12, and 8 were able Transfer from loss to profit for 6 companies that moved from profits to losses, and 6 other companies recorded losses for the two periods. The Ammonttel Group exported higher profit, with the group ' s profits rising in the first half of the current year to 292.7 million Omani rials, compared to 168.7 million Omani rials in the first half of the past year, recorded growth of 73.5 per cent. Oman said that this upward was due to the group ' s higher income in operational markets that the net profit attributable to the shareholders of the company increased from R$ 36.6 million. Okio for exploration and production ranked second with net gains of 199 million Omani rials, compared with 166.6 million Omani rials in the same period last year, recorded growth of 19.4 per cent. The company stated that since the beginning of the current year it had been implementing a growth strategy focusing on exploratory successes, improving trade conditions, discipline in project implementation and the deliberate expansion of the asset portfolio Which enhances production, cash flows, and portfolio sustainability. Bank Muscat came in third place with profits of about 137.5 million Omani riyals, compared to 125.8 million Omani riyals in the first half of last year. The bank said: The financial performance it achieved comes at a time when the bank is working to implement its long-term strategic priorities, focusing on strengthening its core business, investing in technology and innovation, expanding its strategic partnerships, and supporting vital sectors of the national economy in line with the objectives of the “Oman Vision.” 2040. The Omani Indian Fertilizer Company (OMEFCO), which was listed on the Muscat Stock Exchange last July, ranked fourth with net profits at 80.2 million Omani riyals, compared to about 54.2 million Omani riyals in the same period last year. Sohar International Bank came in fifth place, which raised its net profits from 46.1 million Omani riyals to 53 million Omani riyals. In contrast, the first half of this year witnessed a decline in the number of companies that... Losses were recorded for 12 companies 14 companies in the first half of last year, but the recorded losses increased from 7 million Omani riyals to 37.8 million Omani riyals, and the losses of Al Suwadi Power and Al Batinah Power amounting to 34.4 million Omani riyals represent 90.8 percent of the total recorded losses. The two companies said: These losses are due to the assessment of the impairment resulting from the signing of a new power purchase agreement in accordance with the mutually agreed upon commercial terms, and with the exception of this; The two companies recorded good performance at the financial and operational levels, according to the reports submitted by the two companies to their shareholders. In the first half of last year, Al Suwadi Power recorded profits exceeding 8 million Omani riyals, while the net profits of Al Batinah Power Company amounted to 7.3 million Omani riyals. The first half of this year witnessed 8 companies turning from losses to profits, led by Raysut Cement, which recorded net profits of 2.7 million Omani riyals, and Dhofar Tourism, which It recorded profits of 793 thousand Omani riyals, and National Real Estate Development Which recorded net profits at 379 thousand Omani riyals, and the list of companies that moved from losses to profits also included: Financial Services, Fincorp, Al Batinah Development and Investment, National Gas, and Building Materials Industry. The financial results recorded by public joint stock companies were reflected in the volumes, trading values and stock prices on the Muscat Stock Exchange, so that the first half of the current year witnessed trades worth 6.9 billion Omani riyals compared to 917.2 million Omani riyals in the similar period last year, and witnessed many The number of stocks rose significantly, which was reflected in the main index of the Muscat Stock Exchange, the sectoral indices, and the market value, which rose at the end of last June to 36.7 billion Omani riyals, compared to 28.2 billion Omani riyals in June of last year, recording a growth of about 30 percent. Meanwhile, the financial sector index on the Muscat Stock Exchange last week recorded its best level in 18 years and closed at the end of weekly trading at 13,383 points amid investors’ interest in shares of banks and investment companies. That was recorded It rose significantly, benefiting from the improvement in its financial results in the first half of this year and the efforts of investors to seize the opportunities available in the sector supported by optimistic expectations for further growth. Last April, the sector index witnessed a rise to the level of 13,000 points, recording its best level since August 26, 2008. The gains of the index during the past months remained limited until it was able, on August 24 of this current month, to rise above the level of 13,300 points, and the sector index had reached its peak of rise at exceeding 16,200 points, but after that it witnessed a wave of decline that pushed it to abandon many of the record levels it had recorded before. The financial sector index’s gains came through the rises recorded by the shares of Bank Muscat, the National Bank of Oman, Bank Dhofar, Bank Nizwa, International Financial Investments, Muscat Finance, and the Oman and Emirates Investment Company, at a time when the index sample witnessed limited declines.

Detailed summary

Background & context

This story sits within Oman's broader reform agenda and efforts to grow Real estate as a pillar of non-oil GDP. The region benefits from supportive energy prices, expansionary government budgets, and rising interest from sovereign wealth funds and foreign investors.

GCC angle

For the rest of the GCC, this is a signal on the pace of activity in Real estate, Banking, Oil & Gas. Capital flows and regulatory decisions in one Gulf state typically travel across borders given the similar economic structures and the coordination inside the GCC framework.

Risks & uncertainty

There is uncertainty around the read-through: projections can be moved by swings in oil prices, by US monetary policy tightening that most GCC central banks track via dollar pegs, and by regional geopolitical events. Headline numbers may also be revised when subsequent official data is published.

What happens next?

Watch for upcoming disclosures from listed names in Real estate, Banking, official macro releases for Oman, and any commentary from regulators or sovereign wealth funds. Tharwa will refresh this briefing as new public information becomes available.