Ooredoo expected to drive Q3 corporate earnings

11/10/2017 05:58 AST

As the third quarter (Q3,17) earnings reports set to trickle in, Qatar's listed companies are poised to deliver a set of strong numbers.

A consensus estimate of Q3 earnings of 11 major Qatar Stock Exchange (QSE) listed companies covered by the SICO analysts suggests a 13 percent year-on-year improvement in their profits, the second highest in the region. The YoY increase is expected to be led by Ooredoo and to some extent banks.

Ooredoo's bottom line is forecasted to increase by 44 percent higher YoY, due to forex impact in 3Q16. QNB will benefit from its lower provisioning benefit. QIB's third quarter net profit is estimated to increase 10 percent YoY, according to the analysts.

Expectations on higher YoY third quarter results are seen in most GCC countries, except from Oman, which is projected to decline by 13 percent.

According to SICO analysts' estimates, third quarter profits across the GCC are forecasted to be up 9 percent year-on-year and 8 percent higher on QoQ basis. SICO covered a total of 137 companies, including 11 in Qatar, representing 75 percent of the total market capitalisation. QNB is expected to announce its third quarter results today, while Ooredoo has decided to disclose its financial results on October 29. In a regulatory filing to QSE, QIB said it has decided to announce its third quarter results on October 18.

Kuwaiti companies' 3Q17 earnings are forecasted to increase 6 percent YoY. Banks 3Q17 results are expected be 7 percent better YoY. In 3Q17, Omani companies' results are expected to decline YoY, to be dragged mainly by the lower YoY earnings in Omantel. Saudi companies' profits are expected to be 10 percent higher YoY. Saudi Banks' 3Q17 results are forecasted to increase 12 percent YoY, on the back of NIM expansion and the rise in interest rates.

SABIC's bottom line is estimated to decline by 15 percent YoY, Petrochem's net income to decrease 9 percent. Almarai is expected to report 3Q17 net profit at a median of SAR 615m (-4 percent YoY), due to the Qatar blockade impact.

UAE companies' aggregate earnings are estimated to go up 7 percent YoY. Etisalat's 3Q17 bottom line is estimated to improve 12 percent YoY at median of AED 2.1bn, as the telco is expected to have better Macro operations. In Banks, consensus analysts were bullish on ENBD's 3Q17 earnings at a median of AED 1.9bn (+14 percent YoY), with expectations on lower provisioning charges, lower Opex and healthy net interest income growth.

Bahraini companies' 3Q17 earnings are forecasted to be 21 percent higher YoY and 5 percent on QoQ basis. The total Bahraini companies covered are 8 or 63 percent of the total listed companies.

The Peninsula