Total net profits for listed companies in Muscat Stock Exchange (MSX) increased by 11 per cent y-o-y to $468.4 million in Q2 2022 compared with $422 million in the same quarter in 2021, this according to the latest report by Kamco Invest. The banking sector, the biggest sector in Oman’s bourse improved 11 per cent in Q2 2022 to reach $276.4 million, up from $248 million in Q2 2021. The utilities sector followed with the second largest total net profits of $57.7 million during Q2 2022, down from $ 62.2 million in Q2 2021.
Bank Muscat, the Sultanate of Oman’s largest bank by assets, posted the biggest profits within the banking sector during Q2 2022 with net profits of $132.4 million as compared to $123.4 million during Q2 2021. Overall, Bank Muscat posted a net profit of $257.82 million (RO 99.26m) for the first six months ended June 30, 2022, an increase of 4.9 per cent from the same period in 2021. Falling net impairment credit losses mainly contributed to the bank’s rise in profits. However, profits for HSBC Bank Oman witnessed the biggest percentage increase among the banks recording 63 per cent rise in Q2 2022 earnings, which reached $24.4 million as compared to $15 million during Q2 2021. On the other hand, Oman Arab Bank was the only bank among the eight banks on the exchange to post a decline in its Q2 2022. Oman Arab Bank reported a 50.8 per cent fall in Q2 2022 net profits to $ 9.1 million as compared to $18.6 million in Q2 2021.
The profit growth for the telecom sector came on the back higher profits reported by Omantel that reached $41.8 million in Q2 2022 from $39.8 million in Q2 2021. Overall, Omantel reported a net profit of $96.88 million (RO 37.3) for the six months ended June 30, 2022. Increase in net profit is predominantly because of sustainable revenue growth in postpaid mobile revenue (11.7 per cent) and fixed broadband revenue (2.1 per cent), cost optimisation measures, reduction in impairment provision against receivables and depreciation. Comparatively, Oman Qatari Telecommunications SAOG (Ooredoo) reported a 51.5 per cent increase in Q2 2022 net profits that reached $ 13.5 million.
The materials sector witnessed the largest percentage growth in Q2 2022 net profits among the sectors in the MSX market. Raysut Cement Co and Oman Chlorine Co both returned to profits in Q2 2022 after dipping into the red in Q2 2021. Raysut Cement announced Q2 2022 net earnings of $0.4 million as compared to a net loss of $8.6 million in Q2 2021. Similarly, Oman Chlorine posted $2.1 million in Q2 2022 net profits up from a loss of $0.4 million in Q2 2021.
Total Q2 net profits of the energy sector reached $16.7 million as compared to $5 million in Q2 2021, witnessing a 235 per cent y-o-y jump. Shell Oman Marketing Company SAOG registered absolute profit rise among the four companies in the sector with Q2 2022 net profits of $6 million up from $1.1 million in the same period last year. The energy company’s jump in the quarterly profits were attributed to higher revenue due to higher sales, especially on the growth of non-fuel retailing. On the other hand, Oman Oil Marketing Co recorded the biggest Q2 2022 net profits among the companies in the sector with $6.9 million in Q2 2021. Of the four companies in the sector, National Gas was the only loss-making company registering a loss of $0.6 million in Q2 2022 as compared with a loss of $0.7 million in 2021.