(MENAFN- The Peninsula) Industrials and insurance stocks were the main drag on corporate earnings of Qatar's listed companies for the first half of 2014 (H1, 14). The Qatar Exchange (QE) companies' earnings declined 1.9 percent year-on-year (YoY) to $5.6bn during 1H1, 14.
Of the seven sectors on the local bourse, four posted gains, while three reported a decline in earnings during the period. The overall decline was led by Industrial (-21.2 percent YoY) and Insurance (-35.3 percent YoY), which accounted for 6.3 percent and 2.1 percent of consolidated earnings fall, respectively, Global Investment House (GIH) analysts noted yesterday.
Losses in Industrial are mainly ascribed to the 37.8 percent YoY decrease in Industries Qatar's (IQ) earnings, which contributed 57.6 percent to the sector's Consolidated earnings. The deterioration in the company's bottomline is mainly due to a series of extensive, planned major maintenance shutdowns across segments.
Barring IQ, the sector's profit increased 24.1 percent in H1, 14. The Insurance sector was dragged down by Qatar General Insurance & Reinsurance Co, which plunged 92.8 percent due to a fair value loss on financial assets of QR3.9m compared with a profit of QR690.8mn in H1, 13.
Excluding Qatar General Insurance & Reinsurance Co, profit in the Insurance sector grew 53.6 percent. The fall in the Telecommunications sector (contributed 8.3 percent to Qatar's earnings) is ascribed to Ooredoo (-1.8 percent0 , which faced higher operating expenses and SG&A costs and a 3.1 percent YoY decline in revenue.
Among gainers, the Banks & Financial Services sector (7.6 percent) was driven by heavyweight Qatar National Bank (accounted for 4.0 percent of the sector's earnings Growth); the bank reported earnings growth of 7.7 percent , primarily led by a robust Increase in net interest income as well as non-interest income.
This was followed by Qatar Islamic Bank (up 15.1 percent) and Masraf Al Rayan (10.1 percent), which accounted for 1.1 percent and 0.9 percent of the sector's consolidated earnings rise, respectively. Moreover, Dlala Brokerage & Investment Holding Co contributed to the sectoral growth, supported by a profit of QR50.6m compared with a loss of QA22.7m during 1H13.
Gains in Real Estate were driven by a 50.0 percent earnings increase in Ezdan Real Estate Co.(accounted for 23.6 percent of the sector's earnings growth), aided by 58.9 percent growth in rental income to QR641.3mn.
This was followed by United Development Co (up 53.3 percent YoY) and Mazaya Qatar Real Estate Development Co (430.2 percent), which accounted for 17.1 percent and 4.4 percent of the sector's consolidated earnings growth, respectively.
Growth in Consumer Goods & Services (contributed 4.4 percent to Qatar's earnings) was driven by Qatar Fuel Co (12.5 percent) and Al Meera Consumer Goods Co.(96.0 percent ).
Gains in Transportation (contributed five percent to the bourse's earnings) were led by Nakilat, which rose 24.2 percent.
The GCC corporate earnings rise 14.5 percent YoY in H1, 14, led by the UAE and KSA. Corporate earnings in the region rose 14.5 percent to $34.9bn in H1, 14.
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