Profits of Oman's listed companies decline 13.7% to $3.4bn in 2024

22/04/2025 04:17 AST

Total net profits for listed companies in Oman declined by 13.7% year-on-year to $3.4bn in the financial year 2024, compared with $3.9bn in the previous year, primarily due to a drop in earnings from energy sector firms, according to a research report.

The decline in aggregate profits of listed firms was driven by the energy sector, which alone accounted for over 30% of the total net profits on the Muscat Stock Exchange (MSX) during the financial year 2024. Furthermore, sectors such as insurance, transportation, and food and beverages also recorded significant drops in net profit during 2024, as per the GCC Corporate Earnings Report released by Kamco Investment.

Total net profits for the energy sector fell by 43.8% year-on-year to $1.0bn in 2024, compared with $1.8bn in 2023.

In contrast, full-year 2024 earnings for the banking sector - the largest sector by market capitalisation on the Muscat Stock Exchange - rose by 15.2% to $1.4bn, up from $1.2bn in 2023. Within the banking sector, net profits for Bank Muscat increased by 6.2% to reach $585.9mn in 2024, compared with $551.8mn in 2023.

The utilities sector recorded the second-largest growth in total net profits, reaching $261.6mn in 2024, a 51.8% year-on-year increase from $130.9mn in 2023. Within the utilities sector, Phoenix Power Company led with total profits of $59.7mn in 2024, up 4.9% year-on-year. Similarly, Sembcorp Salalah reported 2024 net profits of $58.4mn, compared with $53.3mn in 2023.

Aggregate net profits for the telecoms sector increased by 5.0% to $233.2mn in 2024, compared with $222mn in 2023. The growth in total net earnings for the sector came as both constituent companies posted year-on-year increases in profits, led by Omantel ($202.7mn) and Ooredoo Oman ($30.5mn).

Profits in Q4 2024 jump
On a quarterly basis, total net profits of companies listed on the Muscat Stock Exchange surged by 83.4% year-on-year to $702.4mn in Q4 2024, compared with $383mn in the same quarter of 2023, the report showed.

Total Q4 2024 earnings of the banking sector rose by 29% to reach $258.9mn, up from $200.7mn in Q4 2023. The energy sector recorded the second-largest net profits during Q4 2024, reaching $182.8mn compared with $40.4mn in Q4 2023, marking a 350.9% year-on-year growth, mainly due to the listing of OQ Exploration & Production Company (OQEP).

GCC corporate earnings
According to the Kamco Investment report, a decline in earnings for energy and utilities companies weighed on GCC corporate profit growth in Q4 2024. Quarterly net profits reported by companies listed on GCC exchanges continued to decline sequentially, reaching a three-quarter low during Q4 2024.

Aggregate profits during the quarter dropped by 5% quarter-on-quarter to $57.3bn, as a broad-based fall in profits across most exchanges outweighed gains recorded by companies listed in Dubai and Abu Dhabi.

However, on a year-on-year basis, aggregate profits for the quarter recorded marginal growth of 2.0%, as strong profit gains across most exchanges were partially offset by a decline in aggregate earnings for companies listed on the Abu Dhabi exchange.

At the country level, profit growth was highest for companies listed on the Oman exchange, which posted an 83.4% year-on-year increase in Q4 2024, followed by Bahrain and Kuwait with profit growth of 43.2% and 37.1%, respectively. Saudi-listed companies recorded modest year-on-year profit growth of 3.1%, while corporates in Dubai and Qatar registered growth of around 20%.