GCC-listed companies earn $60.7 billion during Q2

Aggregate net profits reported by companies listed on GCC exchanges witnessed a healthy year on year (YoY) growth of 5.7percent during Q2-2024 led by a broad-based growth across most markets in the region.

Kamco Investment Company, a regional non-banking financial powerhouse headquartered in Kuwait, in its latest report, stated that the quarter on quarter (QoQ) growth came in at 8.1 percent with total net profits up for the second consecutive quarter to reach US$60.7 bn during Q2-2024 as compared to US$56.2 bn in Q1-2024 and $57.4 bn in Q2-2023.

At the regional level, Dubai reported the second-biggest YoY growth in profits (after Bahrain) at 30.9 percent reaching US$6.7 bn during Q2-2024 mainly related to accounting adjustments and restructuring implemented by DSI.

According to the report, companies in Bahrain also reported double-digit YoY growth in profits during the quarter followed by low to mid-single digit profit growth for the rest of the GCC countries. The growth in profits also highlighted a broad-based double-digit increase in profits for most sectors in the GCC.

Key sectors like Banks and Telecom posted profit growth of 10.8 percent and 15.8 percent, respectively, while Materials and Real Estate sectors showed even stronger growth of 45.6 percent and 23.9 percent, respectively. The 68.3 percent profit growth for the Capital Goods sector reflected the accounting adjustments related to DSI.

In terms of 1H-2024 performance, net profits for GCC listed corporates was almost flat with a marginal increase of 0.1 percent to reach US$116.9 bn as compared to US$116.8 bn during 1H-2023.

The flattish growth reflected mixed trend at the country level with Saudi and Abu Dhabi listed entities reporting a decline in net profits by 2.7 percent and 2.2 percent, respectively, which was completely offset by higher total profits for the rest of the country aggregates.

The report concluded that the aggregate for Dubai once again showed the biggest YoY growth of 20.0 percent during 1H-2024.

Meanwhile,  Emirates Global Aluminium (EGA), the world’s largest premium aluminium producer and the biggest industrial company in the UAE outside oil and gas, today reported solid financial performance for the first half of 2024 amid sustained global demand for premium aluminium.

EGA’s adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (adjusted EBITDA) was Dhs4.20 billion (US$1.14 billion), compared to Dhs 4.15 billion (US$1.13 billion) in the first half of 2023.

Net profit was AED 1.84 billion (US$500 million), compared to Dhs 1.96 billion (US$533 million) in the equivalent period of 2023.

EGA’s aluminium segment adjusted EBITDA margin was 27.5 percent, compared to 26.9 percent in the first half of 2023, leading amongst global industry peers.

Abdulnasser bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said, “EGA continues to deliver competitive financial performance throughout the economic cycle, through our focus on operational excellence, controlling our costs, and our long-term commercial relationships with our global customers.

“The first half of 2024 saw our acquisition of Leichtmetall and progress in the development of our recycling plant in the UAE, important first steps in our strategy to grow EGA to meet expanding global demand for low carbon primary and recycled aluminium over the decades ahead. I look forward to further steps before the end of the year.”

Mohamed Almarzooqi, Acting Chief Financial Officer of Emirates Global Aluminium, added, “Our competitive operational and financial performance has enabled us to further improve our leverage position while delivering great returns for our shareholders. This means we are in a strong position to capitalise on the opportunities from the long-term growth of demand for low carbon primary and secondary aluminium.”

EGA sold 1.30 million tonnes of cast metal in the first half of 2024 to 411 customers in 57 countries, compared to 1.32 million tonnes in the first half of 2023.

Some 82 percent of metal sales were value-added products or ‘premium aluminium’ compared to 77 percent in the first half of 2023. EGA focuses on maintaining or growing relative market share in ‘premium aluminium’ in key markets and segments, while also optimising the EBITDA contribution of VAP sales. During the period, demand for billets was up 18 percent year-on-year.

WAM