Profits of Listed Companies 2019 – Preliminary Analysis

About 95 listed companies or 54.6% of total listed companies (174) announced results of their operations for the year ending December 31st 2019, after excluding the companies that did not announce their financial results and those with a different fiscal year. The state’s current health measures to face and address the threat of the Corona virus spread have affected some of the listed companies in delaying the announcement of their annual financial results. Net profits of those 95 companies scored KD 2.006 billion, a 0.3% decline below profits of the same companies in the end of 2018 that were at KD 2.011 billion.

Number of gainer companies reached 83 and 12 achieved losses in 2019, compared to 79 gainers and 16 losers for 2018 for the same sample. From another perspective, 59 companies achieved progress in their performance, including 48 ​​companies increased their level of profit and losses of 11 companies decreased or shifted from losses to profitability, indicating that 62.1% of the companies that announced their results achieved progress in their performances, and the number of companies that achieved progress in its performance from the same sample was 58 companies in 2018. Companies whose performance decreased at the end of last year were 36 companies, including 8 companies that increased their losses or shifted from profitability to losses and 28 companies whose profits decreased, compared to 37 companies including 8 companies that increased its losses or moved from profitability to losses and 29 companies decreased their profitability at the end of 2018.

The top profitable companies list contained 10 leading companies which achieved profits by KD 1.500 billion or 74.8% of total absolute profits. Led by “National Bank of Kuwait (NBK)” with KD 401.3 million of profits. “Kuwait Finance House (KFH)” came second with profits of KD 251 million, and “Ahli United Bank (Bahrain)” came third with profits of KD 221.4 million. On the other hand, 10 companies achieved the highest absolute losses by a total of KD 55.1 million. ” A’ayan Leasing & Investment Company” achieved the highest absolute losses with KD 14.6 million and “Investors Holding Group Company” came second in losses by KD 13.1 million.

In details, only 5 sectors (out of 12 sectors) improved their profits compared with their performances in 2018, just one sector moved from losses to profitability compared with it performance in 2018, while 3 sectors have had their profits reduced. The highest was the Consumer Services sector which increased its profits from KD 6.3 million to KD 32.1 million, increasing by KD 25.8 million. While the profits of the Financial Services sector decreased its profits from KD 165.8 million to KD 133 million, declining by KD 32.8 million. No company from the following sectors has announced its financial results yet: Basic Materials – Health Care – Technology.

On the other hand, 67 companies announced that they will to distribute dividends: 43 will distribute cash dividends only, 8 companies will distribute bonus shares only and 16 companies will distribute both cash dividends and bonus shares, while 28 companies without any distributions.