Profits at GCC-listed companies increased in the second quarter of 2022 compared to the same period in 2021, with Saudi Arabia leading the way by 70.4 percent, according to the Kuwait-based Kamco Invest’s monthly report on the GCC companies’ performance.
The increase in profits of energy companies due to elevated oil prices around $100 per barrel level accounted for the bulk of the absolute increase in profits in the region, Kamco Invest said in its report.
According to the report, the aggregate net profit for the GCC-listed companies reached $77.3 billion during the second quarter compared to $47.6 billion during Q2 2021.
Quarter-on-quarter (q-o-q, companies recorded a growth of 17.6 percent, or $65.7 billion, an increase of 62.2 percent.
Energy, banks, and materials were the top three sectors by absolute profit growth compared to Q2-2021, accounting for almost 90 percent of total year-on-year growth in profits.
Saudi Arabian-listed companies once again reported the biggest y-o-y growth during Q2-2022 with net income growth of 70.4 percent, or $24.6 billion.
Profits at publicly traded Saudi companies increased to $59.5 billion in Q2 2022, up from $34.9 billion in the same quarter of 2021.
The Saudi energy sector’s net profit amounted to $46.7 billion in Q2 2022, making it the largest contributor to net profits.
Profits in Abu Dhabi were approximately $7.2 billion, while profits in Qatar were $3.8 billion. Dubai made $3.7 billion in profits, Kuwait $1.7 billion, Bahrain $900 million, and Oman $500 million.
The report showed a 64.1 percent increase in Gulf company profits in H1 2022, to $143.1 billion, compared to $87.2 billion in the same period last year.
Additionally, findings revealed that consumer and business sentiment was strong during the quarter, despite the global slowdown caused by rising inflation and central banks’ efforts to control prices.
In Q2 2022, the Gulf banking sector’s quarterly net income reached a new high of $10.9 billion. Profit growth was driven primarily by higher bank revenues, which were supported by a slight decrease in provisions, while the cost-to-income ratio remained stable.