BUSINESS REPORTER
MUSCAT, JUNE 11
Total net profits for listed companies in Muscat Stock Exchange (MSX) increased by 17.4% in Q1 2023 to reach $466.4 million compared to $397.2 million in Q1 2022 following higher profits for the banking, telecom, and the diversified financial sectors, Kamco Invest reported.
In Q1 2023, the banking sector witnessed net profits growth of 19.4% to reach $290.9 million up from $243.6 million during the same period in 2022. In the banking sector, seven out of the eight constituents reported growth in their net earnings while Ahli Bank reported a 26.2% decline in profits that reached $14.4 million during Q1 2023. HSBC Oman led the banks in terms of absolute growth in y-o-y profits that reached $31.7 million against $14.0 million. Comparatively, NBO reported the largest absolute profits among the banks in the sector at $37.3 million up from $26.6 million in Q1 2022. HSBC Oman’s quarterly profits growth was primarily driven by a 42.8% growth in net operating income and lower operating expenses. NBO’s strong performance was induced by increasing net interest income, and decreasing net impairment.
The total net profits of the telecoms sector in Q1 2023 increased by 4.4% y-o-y to reach $62.3 million as compared to $59.6 million in Q1 2022. Omantel posted a net profit of $55.1 million in Q1 2023 recording a 14.6% y-o-y growth from $48.0 million in Q1 2022. Omantel’s improved quarterly net profit was attributed to an increase in gross margins in the retail and wholesale segment, a decrease in finance costs and an increase in dividend income from Zain group. On the other hand, Q12023 net earnings for Ooredoo Oman fell 38.0% y-o-y to $7.2 million.
In the food, beverage & tobacco aggregate for Q1 2023 reached $6.8 million as compared to $0.2 million in Q1 2022. The profits jump was mainly due to the return to profitability of Salalah Mills and A’Saffa Food Company. The Q1 2023 net profits of Salalah Mills reached $1.1 million bouncing back from a loss of $0.3 million whereas A’Saffa Food Company bounced back from a loss of $1.2 million in Q1 2022 to a net profit of $2.0 million in Q1 2023.
Meanwhile, the utilities sector was the only sector with total net losses during Q1 2023 after four out of the eight companies in the sector reported net losses during the period. Phoenix Power recorded the biggest net loss during the quarter at $11.5 million as compared to $11.1 million loss in the corresponding quarter of the previous year. ACWA Power Barka was the only one of the four power companies in the sector which recorded a profit during Q12023 with $0.61 million in net profits up from $0.4 million in Q1 2022.
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