8 listed national companies turn to “profitability” during the second quarter

Eight national companies listed on local stock markets succeeded in returning to profits by the end of the second quarter of this year, thanks to their return to their operational path, the growth of their revenues, and the reduction of their expenses.

According to a survey by “Emirates Today”, based on the financial results of the companies announced on the financial market websites, the net profits of these eight companies listed on the Dubai Financial Market and the Abu Dhabi Securities Exchange, during the second quarter of 2024, reached about 3.93 billion dirhams, compared to losses of about 80.96 million dirhams during the same period last year.

Dubai Financial

In the Dubai Financial Market, listed Drake & Scull came in first place, with net profits reaching AED 3.832 billion, compared to losses of AED 43.4 million in the same period of the previous year, with an increase in revenues and the completion of the restructuring process, after it raised more than AED 450 million in a capital increase subscription with a coverage of 150% of the capital requirements.

“Sukoon Takaful Company” (formerly Oman) was able to achieve profits of AED 2.64 million at the end of the second quarter of 2024, compared to losses of AED 9.33 million during the same period in 2023, supported by an increase in net investment income.

In turn, the results of the business of the Islamic Arab Insurance Company – Salama, listed on the Dubai market, showed that its business results turned into profits amounting to about 690 thousand dirhams in the second quarter of this year, compared to losses amounting to 5.02 million dirhams in the same period last year, supported by a decrease in financing expenses.

National International Holding Company, also listed on the Dubai Financial Market, achieved profits of AED 2.03 million, compared to losses of AED 1.11 million recorded during the same period in 2023, supported by an increase in operating revenues and a decrease in some expenses.

Abu Dhabi Securities Exchange

In the Abu Dhabi Securities Market, the results of the business of “Ibex Investment Company” turned into profits worth 18.74 million dirhams, compared to losses amounting to 8.63 million dirhams during the comparative period last year.

For its part, Fujairah National Insurance Company, listed on the Abu Dhabi Securities Exchange, announced achieving net profits of AED 6.95 million in the second quarter of 2024, compared to a loss of AED 6.55 million in the second quarter of 2023.

In turn, the listed company, i7 Group, recorded profits of 64.5 million dirhams, compared to recording losses of 4.27 million dirhams during the same period in 2023.

The results of the Aram Group’s business also turned from losses of about 810 million dirhams to profits of about 240 thousand dirhams in the same period of the current year.

positive mood

In addition, Abdul Qader Shaath, Director of Al Ansari Financial Brokerage Company, said that these companies moved from losses to profits, due to several factors, most notably their return to their operational path, and their success in controlling their working capital, which was positively reflected in their financial results by the end of last June, in addition to their disposal of some non-viable assets, reducing administrative expenses, and reducing their provisions.

For his part, John Aaron Lisi, chief market analyst at Century Financial, said, “Most companies’ revenues witnessed significant growth, which supported the results of most of them to turn profits in the second quarter of fiscal year 2024,” thanks to the growth in revenues for some of them, and the completion of successful restructuring operations by others.

He stressed that there is strong positive sentiment prevailing in the local financial markets regarding the performance of major companies.

Financial analyst Mahmoud Atta expects these companies’ results to improve further as local and foreign investors gain confidence in the UAE’s thriving financial business environment. “There is an atmosphere of optimism in the markets as we enter the third quarter of this year, with US markets showing signs of stability, and deflationary trends and labor market stability paving the way for potential interest rate cuts next month. In addition, fears of a global recession are receding,” he said.

“Your country”

Abu Dhabi National Building Materials Company (Bildco), listed on the Abu Dhabi Securities Exchange, achieved profits of AED 2.73 million at the end of the second quarter of this year, compared to recording losses amounting to the same value of profits (AED 2.73 million), which the company recorded during the same period in 2023.