ARAB TIMES, WEDNESDAY, AUGUST 17, 2011
Amer H1 net falls Orascom Development posts loss Egypt repos
Egyptian real estate company Amer Group’s first- Egyptian group Orascom Development (loss than expected), but it is still of no Mubarak, the company said. Egypt’s central bank accepted
half net profit fell 13 percent to 201.4 million slumped to a first-half loss, hit by eco- surprise that they posted a net loss,” said A slump in occupancy pushed hotels 2.66 billion Egyptian pounds
Egyptian pounds ($33.7 million), the bourse said on nomic disruption caused by the country’s Ankur Khetawat of HC Securities, who revenue down 43 percent, and a halt in ($445.54 million) in seven-day
Tuesday. popular uprising and the strengthening of had estimated a 3 million franc net loss building activity sent turnover from prop- repurchase agreements in the
Amer, a property conglomerate, began trading on the its reporting currency, the Swiss franc. for the second quarter. Reuters calcula- erty and construction down 78 percent. money market (CBES) on
stock exchange on Nov. 30 last year after a heavily-over- Swiss-listed Orascom , known mostly for tions show the company made a net loss “Normally in the hotel industry, operat- Tuesday, less than the 3 bil-
subscribed initial public offering. building luxury resorts, posted a net loss of of 14.3 million francs for that quarter. ing breakeven levels are at 40 to 50 per- lion pounds it had asked for.
The Egyptian firm, which owns hotels, restaurants, 13.7 million Swiss francs ($17.5 million) on Orascom Development has been diver- cent occupancy. Orascom had 46 per- The repos carry a fixed rate
malls, a catering firm, a utilities company and other Tuesday, compared with a profit of 50.9 sifying its business, but Egypt remains its cent, with high administrative expenses of 9.25 percent.
businesses, made a net profit of 232.3 million million in the 2010 period. Revenue tum- biggest market. Businesses there came to and a delay in a potential 33 million francs The central bank introduced
pounds for the same period in the fiscal year 2010. bled 62 percent to 107 million francs. a near standstill for almost 50 days due to of revenue due to Egypt’s uprising, which its weekly repo offerings on
(RTRS) “Orascom reported roughly higher the uprising that ousted President Hosni led to a loss,” Khetawat said. (RTRS) March 20. (RTRS)
GCC corporate earnings
Kuwait Financial Centre
Earnings decline 7 percent in Q2 YoY
A s of first week of August 2011, we
have 84 percent visibility in terms
of market cap and 59 percent visibility
strong set of numbers with net income
of $570mn. Higher volumes and
improved demand proved beneficial
in terms of number of companies to for the company. Bank earnings grew
measure the performance of GCC cor- 13 percent YoY to $944mn. Qatar
porate earnings, according to a recent National Bank grew its earnings by 26
report by Kuwait Financial Centre percent YoY and 6 percent over the
“Markaz”... Saudi Arabia enjoys nearly quarter. QNB’s net income of $497mn
100 percent market capitalization visi- was driven by lower cost of funds and
bility, followed by Oman with 77 per- higher NIMs.
cent visibility. Bahrain’s visibility at 49 Oman’s corporate earnings declined
percent is the lowest in GCC region. 10 percent YoY basis, though it was up
During 2Q11, GCC corporate earn- by 35 percent on QoQ basis to $472mn
ings declined by 7 percent when com- as the Sultanate started to recover from
pared to 2Q10. Total earnings, which the political turmoil that had effect it
came in at $12.8bn was less than the during the last quarter. Banking sec-
profits posted during the previous quar- tor’s earnings were down at $94mn (-
ter (1Q11) by 7 percent. In 1H11, the 28 percent YoY, -38 percent QoQ), due
GCC corporate earnings show an to negative earnings posted by Bank
upswing of 5 percent compared to 1H10. Dhofar. Bank Muscat’s net income of
Total earnings came at $26.5bn com- $76mn was 30 percent higher on YoY
pared to $25.3bn in 1H10, mainly due to Excluding this one-time adjustment, year supported the increased profits. percent YoY and 20 percent QoQ. was up 15 percent YoY, while Real basis and 6 percent on QoQ basis.
the improved performance in 1Q11. the sector’s earnings fell by only 11 Qatar earnings during the first half of SABIC, which reported $2.2bn in 2Q Estate and Construction related compa- On a like-to-like basis, Bahrain’s
Corporate earnings declined due to percent YoY. Real Estate sector recov- the year was $4.3bn, almost flat com- profits, led the growth which was driv- nies posted positive earnings compared corporate reported a profit of $270mn
weak performance by the Telecom sec- ered from the slump experienced last pared to the previous year. The banking en by higher volumes and prices. Al to last year. in 2Q11, an increase of 28 percent YoY
tor in the region. Nevertheless, Banks year and reported a profit of $386mn in and the commodities sectors came up Rajhi Bank reported net income of During 2Q11, UAE posted earnings and 13 percent QoQ. On like-to-like
and Commodity companies continued 2Q11, up 127 percent YoY. with good results during the year. $491mn, up 4 percent YoY. Saudi of $2.4bn as against a profit of $2.1bn basis, Banks reported an earnings
to perform strongly. The region’s con- 1H11 Earnings However, the performance of the Telecom’s net profit increased 9 per- in 2Q10. Real Estate recovery and growth of 63 percent on YoY basis.
tinued dominance as a petrochemical During 1H11, Saudi Arabian compa- telecommunication sector was disap- cent YoY to $602mn. The increase in profits from Banks led earnings growth Ahli United Bank grew its earnings
hub, global recovery, and spikes in com- nies posted a total profit of $12.7bn an pointing. Oman’s corporate earnings net profit is mainly on account of high- in UAE. Bank earnings at $1.5bn, were over the year by 20 percent to $84mn.
modity prices supported the perform- increase of 25 percent YoY. The declined 16 percent YoY during the first er sales and lower operating expenses higher by 33 percent on YoY basis. Abu Net income of Bahrain Telecom suf-
ance of companies across the region. increase was due to higher earnings half of the year to $0.8bn. The decrease in this quarter. Dhabi Commercial Bank led the fered, declining 5 percent YoY, though
Aggregate Net Profits from the reported during the 2Q11 by all the sec- in profit was mainly due the low profits Kuwait Corporate earnings fell by 73 growth in 2Q11 with positive earnings increasing by 22 percent on a QoQ
Commodity sector were $3.4bn (+54 tors across the board. Earnings of reported by the Banking and the percent YoY, due to decrease in profit reported during the quarter compared basis.
percent YoY, +4 percent QoQ). Kuwaiti companies during the 1H11 Telecommunication sectors. On a like- reported by the Telecom sector. to last year. Emirates NBD reported Kuwait Financial Centre ‘Markaz’,
Amongst sectors, Banking continued to were down 33 percent YoY to 2.9bn. to-like basis, Bahrain’s corporate report- Telecom sector growth in 2Q10 was earnings growth of 87 percent YoY, due with total assets under management of
deliver the highest profits, at $5.0bn. The decline in earnings was mainly due ed a profit of $510mn in 1H11, an driven by one time gain of $2.75bn to higher other operating income. over KD 906 million as of June 30th,
Robust demand and access to low cost the decreased profits reported by the increase of 5 percent YoY. The increase reported by Zain from discontinued Qatar earnings declined in 2Q11, 2011, was established in 1974 has
funds improved spreads in this quarter. Telecommunication sector in Kuwait. in profit was due to the improved results operations. However, after adjusting with corporate earnings coming at become one of the leading asset man-
Telecom sector registered 66 percent UAE companies reported a profit of posted by the Banking sector in Bahrain. for this one-time gain, corporate earn- $1.9bn, down 12 percent over 2Q10. agement and investment banking insti-
YoY decline in net income due to $5.2bn during the half year, an increase 2Q11 ings increased by 57 percent YoY in Though, on a like-to-like basis the tutions in the Arabian Gulf Region.
Zain’s one time profit from discontin- of 5 percent YoY. The surge in the Earnings of Saudi Arabian compa- 2Q11, as other sectors performed well profit for the quarter was up 18 percent Markaz was listed on the Kuwait Stock
ued income reported in 2Q10. Banking sector performance during the nies totaled $6.9bn, an increase of 28 in the Kuwait region. Banking sector YoY. Industries Qatar delivered a Exchange (KSE) in 1997.
Ties with consumers eyed
New IEA head brings
Businesses in Middle East
Middle East expertise
AMSTERDAM/PARIS, Aug 16,
(RTRS): The burden of oil on a
Some traders, speaking on con-
dition of anonymity, voiced con-
hope for Ramadan rebound
broken world economy and dam- cern the former teacher of voca-
aged ties with OPEC will be major tional education, who was elected a Television one of main drivers for increased spending
challenges for Dutch politician and member of parliament in 1991, did
former teacher Maria van der not know enough about energy.
Hoeven when she takes over as Stint DUBAI, Aug 16, (RTRS):
head of the International Energy
But her backers say her stint as
Businesses in the Middle East Belarus firm failed to meet commitments: Sadouni
Agency on Sept 1. are betting that Ramadan,
Van der Hoeven must also economy minister from February
reassess membership of the IEA,
which represents oil consumer
countries, as China and India
emerge as the big oil users of the
2007 to October 2010 had a large
energy content, including estab-
lishing ambitious targets for renew-
the high-grossing annual
Muslim month of fasting and
reflection, will be able to
Belarusneft quits Iran oil field
future and as demand in the United At the same time, the shake off any dip in spending TEHRAN, Aug 16, (RTRS): The The $500 million buy-back contract commitments on the oilfield.
States, still the world’s biggest Netherlands’ status as a gas due to the social unrest seen Belarusian national oil company at the Jofeir oil field, in the southwest- “Based on the contract the Belarus
gasoline guzzler, levels off. exporter allowed her to connect in parts of the region. Belarusneft is pulling out of develop- ern province of Khuzestan on the Iraq company was supposed to produce
Those who know Van der with the major OPEC members After the Arab world, mainly the ing Iran’s Jofeir oilfield over differ- border, was signed between NIOC and more than 3,500 barrels of oil per day
Hoeven say her three-and-a-half during trips to the Middle East. oil-rich Gulf, was hit hard by the ences with the state National Iranian Belarusneft in September 2007. from the field, but in practice the pro-
years as Dutch minister of econo- Jan Willem van Hoogstraten, global financial crisis and local debt Oil Co (NIOC), the semi-official Mehr The report said the differences duction never went beyond 2,800 bar-
my, a post that included responsi- Abu Dhabi National Energy woes, its economies began recover- news agency reported on Tuesday. between the two companies stemmed rels,” he said.
bility for energy policy, has Company’s managing director for ing in 2010 until the arrival of the “Belarusneft has brought to an end to from “the manner of the field’s produc- Sadouni said the remaining differ-
equipped her well. the Netherlands, said Van der Arab Spring threw into doubt the sus- all its oil activities in Iran since (late tion, Belarusneft compensation from ences between NIOC and the
“She is well known and she is Hoeven had attracted foreign part- tainability of a recovery in countries June), and it is predicted that the the development of the field and some Belarusneft would be settled later on
liked. That’s one side of her. And ners to play a part in the develop- such as Egypt and Bahrain. European company’s contract on the technical issues.” Tuesday and the Belarus company
another side is that she can be very ment of the Dutch gas hub. development of phase one of the Jofeir However, Naji Sadouni, the director would be officially out of the con-
“These projects cannot be Governments have made up for dips
focused on what she wants to in private spending by boosting their oil field will be cancelled on of the state Petroleum Engineering and tract.
reach, what she wants to get. By realised without strong support (Tuesday),” the agency said quoting Development Co, said the Belarus No Iranian oil officials were immedi-
and large, the combination of these from the state. Maria van der own funding of projects and infra-
structure. unnamed NIOC sources. company had failed to meet its contract ately available to comment.
two things will make her a strong Hoeven generated the needed trust
chief of the IEA,” said former between the companies and coun- Ramadan, and the Eid holiday imme-
political associate Hans Vijlbrief, tries involved by explicitly diately after, has become an annual put down an average of 25 percent of economy is expected to see growth of 1 nitely. In the car business, in the elec-
director general at the Dutch expressing strong support from the opportunity for businesses to ring up their annual advertising budget in just percent in 2011 according to the IMF, tronic business, in the food business, in
Ministry of Economic Affairs. Dutch state,” Van Hoogstraten said. profits, and is in focus this year given Ramadan of that year. its slowest since 1992. the advertisement business,” said
the regional turmoil and its impact on During Ramadan, a month-long This year, because of the lunar Hayek.
spending. lifestyle shift that includes shortened rhythm of the Islamic calendar, Television is one of the main drivers
Activity working hours and large family gatherings Ramadan falls right in the middle of for increased spending as the lifestyle
Oil prices to revolve around “Post-Ramadan there is more eco-
nomic activity. The month instills fresh
energy into the system,” said
to break the daily fast, spending on food
tends to increase because of the lavish
meals set out after the fast ends at sunset.
August, usually a slow time across the
region, with searing temperatures and
holidays. But Ramadan usually encour-
shift translates into more time spent in
front of the television during the day.
According to Hayek, the average time
$100 pb till 2011 end: expert Shaharayar Umar, marketing director
at Dubai-based Pan Arab Research
The gift-giving Eid holiday that immedi-
ately follows Ramadan is also big busi-
ness, with auto sellers offering discounts
ages people to stay at home, and has
been immune to political and commer-
spent watching TV doubles to seven
hours per day during Ramadan.
Of the total $2.2 billion spent on
KUWAIT CITY, Aug 16, (Agencies): Also: According to PARC, across the Arab and shopping malls launching sales. “Our experience says that no matter advertising in Ramadan in 2010, $1.7
Oil prices will revolve around $100 till World advertising spending generally Private consumption is a significant where and in which calendar month billion was allocated to television
LONDON: OPEC’s reference crude oil doubles in Ramadan, with some com- driver of economic activity in the Arab Ramadan falls, it’s a seasonality by alone. Advertisers are betting the same
the end of this year, Kuwaiti oil expert basket price rose to $104.78 a barrel on
Mohammed Shatti forecast, citing sev- panies spending up to 78 percent of world. In Saudi Arabia, consumer itself,” said Mazen Hayek, official will happen this year, to help make up
Monday from $103.81 in the previous their annual advertising budget during spending accounts for around 35 per- spokesperson for regional television for a drop in overall advertising due to
eral factors including the drop of oil session, OPEC said on Tuesday .
supplies from outside the Organization these 30 days. In 2010, the Middle cent of the economy. It is around 73 giant MBC Group. the region’s political and economic tur-
The reference basket comprises 12 East’s top five spenders on advertising percent in Egypt, whose unrest-hit “Is there a Ramadan economy, defi- moil.
of Petroleum Exporting Countries crudes.
(OPEC). They are Algeria’s Saharan Blend,
In statements to KUNA, Shatti esti- Angola’s Girassol, Iran Heavy, Iraq’s
mated the increase in oil demand this
year at 2.1 million barrel per day, citing
Basra Light, Kuwait Export, Es Sider
from Libya, Nigeria’s Bonny Light, the
global reports based on the forecasts of Qatar Marine, Saudi Arabia’s Arab Light,
a slowdown in the pace of global econ- Murban from the UAE, Venezuela’s
omy growth during the second half of Merey and Oriente from Ecuador.
❑ ❑ ❑ KHOBAR, Saudi Arabia: South duction for toluene di-isocyanate (TDI), orandum of understanding with Saudi company Tullow Oil. (RTRS)
Korea’s Daelim Industrial is the front methylene di-para phenylene isocyanate Arabian firm PetroSaudi International, ❑ ❑ ❑
He pointed out that all indicators The price of Kuwaiti crude oil runner for deals to build parts of a giant (MDI), dinitrotoluene (DNT), mononi- to jointly explore, develop and produce oil
show that OPEC production will increased $0.98 to reach $102.63 per trobenzene (MNB), analine, formaline, and gas and related services in Ghana, the
JEDDAH: Saudi Kayan Petrochemical
petrochemical complex owned by state oil Co, a unit of Saudi Basic Industries Corp
remain unchanged in 2011, which barrel (pb) on Monday, compared to sources said. (RTRS) GNPC said on Tuesday.
giant Saudi Aramco and US Dow signed a 488 million Saudi riyal ($130 mil-
means a reduction in demand for oil $101.65 per barrel on Friday, said Chemical , industry sources said. ❑ ❑ ❑ Ghana, Africa’s newest crude producer, lion) contract with China’s Sinopec to
and continuing withdrawal from oil Kuwait Petroleum Corporation (KPC) Daelim submitted the lowest bid for the ACCRA: Ghana National Petroleum began pumping oil last December from its build a natural alcohol plant in Saudi
inventories by industrialized countries. on Tuesday. construction projects, which include pro- Corporation (GNPC) has signed a mem- Jubilee oilfield, operated by UK energy Arabia, Kayan said on Tuesday. (RTRS)