GCC corporate profits reach 5-year low

GCC corporate profits reach 5-year low

Muscat: The COVID-19 pandemic resulted in an unprecedented impact on the GCC economy that dented both corporate and government's coffers, according to a new report. Earnings reported by GCC-listed companies declined to a 5-year low to US$91. 3 billion in 2020 as compared to US$150. 5 billion during 2019, the Kuwait-based Kamco Invest said in its report. The 39. 3 per cent or US$59. 2 billion decline came mainly on the back of a decline in profits for Saudi Aramco (by US$38. 9 billion or 44. 1 per cent year-on-year (y-o-y) followed by Banking, Real Estate and Materials sectors. The three sectors accounted for 85 per cent of the decline in net profits for the year when excluding net profits for Saudi Aramco. Excluding the oil giant's numbers, the decline in Gulf Cooperation Council (GCC) net profits was relatively lower at 32. 6 per cent. The only sectors that showed a noticeable increase in net profits during the year were the Utilities and Food, Beverage and Tobacco sectors that remained resilient during the pandemic due to their defensive nature. Out of the 21 sectors on the exchange, 12 sectors witnessed a y-o-y decline in profits whereas gainers only reported marginal