Chairman’s Report - 31st March 2011
Dear Shareholders,
Let me take this opportunity to present the financial performance of Oman &
Emirates Investment Holding Co SAOG for the three month period ended 31 March
2011 and also a brief update on the various activities of the company.
Financial Results:
During the I quarter 2011, the Group has incurred a Net Loss of RO 2,504,088 (I
Quarter 2010: Net Profit of RO 2,413,238) and the Parent Company has incurred a
Net Loss of RO 1,947,632 (I Quarter 2010: Net Profit of RO 1,560,368).
The decline in the stock indices in Oman - MSM by (-) 8.70% and UAE - ADX by (-)
4.15% and DFM by (-) 4.57% during the I Quarter 2011 had a negative impact on the
investment valuations and consequently on the profitability of the company. The
local conditions in the region have adversely affected the performance of the stock
markets in these countries.
Net Equity and Investments:
The Net Equity of the Group and the Parent Company stands at RO 15.522 Million
(31 March 2010: RO 22.043 Million) RO 12.275 Million (31 March 2010: RO 17.499
Million) respectively, as against the share capital of RO 12.187 Million as at 31 March
2011. The total value of the investments for the Group and the Parent Company has
become RO 49.428 Million (31 March 2010: RO 50.197 Million) and RO 44.081 Million
(31 March 2010: RO 47.628 Million) respectively as at 31 March 2011.
New Investments:
During Jan 2011, the company has acquired a net additional equity stake of 13.76%
at a cost of RO 1.209 Million in The Financial Corporation Co SAOG (FINCORP),
thereby increasing the holding to 51.2 and making this as a Subsidiary Company. We
believe that this acquisition will help us to strengthen our investment base in the
Financial sector. Besides, the company has invested RO 978,254 in the ‘Rights’
offering of Oman Medical Projects Co SAOG in Jan 2011.
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Associates and Subsidiaries:
The associates and subsidiaries have shown mixed performance and the share of
results from these companies during the I Quarter 2011, based on our equity holding
in these companies as at 31.03.2011 are as follows:
Investee Companies
Majan Capital Fund
CI Capital Gulf Financial Brokerage Co LLC
Omani Euro Food Industries Co SAOG
Omani Pedigree Goat Breeding Co LLC
FINCORP SAOG
Oman Hotels and Tourism Co SAOG
Oman Medical Projects Co SAOG
Horizon Technologies Co SAOC
Dhofar Fisheries Industries Co SAOG
Oman Fiber Optic Co SAOG
Equity
Holding
%
91.11%
50.00%
65.80%
100.00%
51.20%
31.17%
39.63%
20.00%
39.13%
20.91%
Jan – Mar
2011
RO
(-) 279,234
(-) 52,174
(-) 65,606
(-) 33,262
(-) 263,973
95,936
75,058
(-) 117,476
(-) 111,101
99,515
Jan – Mar
2010
RO
247,296
(-) 82,090
(-) 50,484
(-) 72,754
50,089
129,879
(-) 130,502
(-) 174,914
-
Outlook:
It is expected that the stock markets across the region are likely to perform better in
the coming months, leading to appreciation in the stock prices, leading to a higher
investment valuation at the end of the current year. We are also closely monitoring
the operations of the loss making companies in the Group and trying our best to
bring in strategic investors for these companies with a view to set in place stable
income stream in these companies. We are hopeful of achieving positive results in
this matter.
Acknowledgement:
We take this opportunity to convey our heartfelt gratitude to the Government of the
Sultanate of Oman and United Arab Emirates, banks, stock market authorities,
shareholders and employees of the Company for their unstinted support and
cooperation. May God help us to serve better and better for the furtherance of both
the countries under the wise guidance and leadership of His Majesty Sultan Qaboos
Bin Said and His Highness Sheikh Khalifa Bin Zayed Al Nahyan. May God’s Grace
be bestowed on them in abundance towards achieving greater success in all their
endeavours.
HILAL HAMAD ABDULLAH AL HASSANI
Chairman
7th May 2011
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