Ominvest profit surges to RO5.9 million in H1

MUSCAT — Oman International Development and Investment Company (Ominvest) yesterday reported a smart improvement in its operations during first six months of 2005 as its net profit surged to RO5.9 million from RO4.5 million in the corresponding period of 2004.

By From Our Correspondent

Published: Thu 11 Aug 2005, 10:45 AM

Last updated: Thu 2 Apr 2015, 4:14 PM

Income recorded from the local and foreign marketable investments amounted to RO2 (RO1.7 million), including cash dividends and fees.

"The Muscat Securities Market (MSM) General Index gained 61.5 per cent in the first half of 2005 led by a strong rise in the banking and investment sector of 72.96 per cent," Chairman Hani bin Mohammed Al Zubair said.

"Our view is that the market's performance in second half of 2005 is likely to be more sedate as the market consolidates at these levels. The foreign marketable portfolio, despite outperforming its benchmark, was unable to contribute positively in a difficult investment environment where sharp declines were experienced in the debt, commodity and the currency markets in second quarter of 2005," he added.

He said the company was hopeful that the portfolio would perform satisfactorily in second half of the year as markets recovered and investments in the GCC countries were listed and realised.

Realisations from the foreign private equity portfolio contributed RO338,059.

Ominvest's banking subsidiary, Oman Arab Bank, had earlier announced a 46.29 per cent increase in net profit (RO7.9 million in HI of 2005 versus RO5.4 million in Hl of 20O4) mainly due to gains from its local investment portfolio and substantially lower provisioning for credit losses.

Other local investments reported income of RO366,511, compared with RO 365,976 in the first six months of 2004.

"Continued difficult trading conditions for manufacturing/exporting associates impacted returns from these companies," Zubair said.

"As reported previously in QI, substantial provisioning was required as significant irregularities have been discovered at Keemya Oman SAOG and in addition to the provision of RO350,000 made in QI, a further provision of RO241,000 was made in Q2.

"We believe these provisions cover potential losses that could arise from share of guarantees/undertakings given by Ominvest, as a founder shareholder, on behalf of Keemya Oman SAOG to Omani commercial banks."