Top companies on MSM

Top companies on MSM

2016 proved to be another tough year for businesses as lower global crude oil prices continue to weigh heavily on government spendings. Oman, which heavily depends on oil revenues, had to cut spendings to tame its bulging fiscal deficit in 2016. 

Cuts in the government spending created havoc in the market and almost all companies felt the pinch. This is evident from the fact that 20 out of the top 50 companies by market capitalisation listed on Muscat Securities Market reported a decline in their overall sales in 2016 compared to 2015. Similarly in terms of net profit, the situation is even worse as nearly 21 out of the top 50 companies showed dip in net profit.

According to experts, the economy suffered a set back as the oil prices in the first half of 2016 fell to multi-year lows thereby creating additional pressure on the state finance. Though prices recovered a bit in the second half, it still remains at much lower levels compared to 2014. In 2016, Omani crude fetched around US$41/bbl, one of the lowest in the past 12 years. The result was burgeoning fiscal deficit and a number of austerity measures.

The construction sector was the worst hit as it is primarily driven by government projects. A majority of companies related to the construction sector – cement or tile makers, contracting companies etc – suffered a set back in 2016 as demand slowed down. However, there were some positive indications in latter half of 2016. The 20-nation agreement between OPEC and non-OPEC member countries to cut production for the first time in eight years augured well to balance the oil market.

Another important aspect of 2016 was that financial sector companies like banks and finance companies reported growth in overall sales. Most of the power companies, who had reported robust growth in 2015, continued to perform well in 2016. Another highlight of 2016 is that Bank Dhofar became the fourth company among listed firms in MSM to achieve a market capitalisation of over RO400mn joining the ranks of Bank Muscat, Omantel and Ooredoo.

Despite volatile oil prices, Oman has shown commitment to go ahead with economic diversification prgrammes. As part of Vision 2020, Oman is well on track to find alternatives for oil and gas revenues by investing in maritime ports, special economic zones, logistics hubs, mega industries, fisheries, tourism and other sector.

Most companies believe 2017 would also be another challenging year as oil prices, though having recovered from the lows of 2016, continue to remain soft. A modest two per cent GDP growth in 2017 has been projected in Oman’s budget for the year on the back of privatisation reform as well as implementation of Tanfeedh-led non-oil economic diversification strategy.

Top 20 by growth indicators

Methodology

  • Top 50 listed companies on Muscat Securities Market is based on their market capitalisation as on December 31, 2016.
  • Companies which were listed last year, and didn't have corresponding comparable figures are excluded from the list.
  • Investment holding companies, whose earnings are only through their investments in other listed companies have also been excluded from the list.
  • Companies having July-June financial year also are excluded from list as their full year numbers for the comparable period are not available.
  • Companies having April-March calender year having normalised for the 12 months period between January and December.
  • For convenience, up to two decimal point figures have been taken.
  • All the figures in the table have been taken from companies disclosure made to the Muscat Securities Market.
Top 50 Companies
MSM 50
Top companies on MSM
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