Gulf corporate earnings slide
THE earnings of Gulf-listed firms dropped 8 percent in the first half of 2016 due to low oil prices and a lack of liquidity.
Net profits of over 650 firms on the region’s bourses reached US$32.8 billion in the six months against $35.6 billion for the same period of 2015, said Kuwait Financial Centre Markaz.
All posted drops but for those on the stock market in Oman, where net earnings rose by seven percent, the investment firm said in a report.
Stock exchanges in members of the Gulf Cooperation Council were hit hard last year and in the first few months of 2016 as a result of the sharp fall in oil revenues.
“Lower oil prices, liquidity squeeze and sedate global growth led to decline in GCC corporate earnings in the first half of 2016,” said the report.
“During the first half of 2016, earnings in the GCC fell by 8pc over the same period in 2015.”
The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, which together pump around 18 million barrels of crude oil daily. –