OMINVEST IMPLEMENTING GROWTH STRATEGY FOLLOWING ONIC MERGER
MUSCAT: Higher share of profits from its subsidiaries and associate companies, helped Ominvest report a group net profit of RO28.11mn for the nine-month period ended September. This was 18.2 per cent higher from the same period of 2014.
The investment company’s group revenues rose 30.5 per cent to RO89.06mn. Ominvest successfully completed its merger with ONIC Holding in August this year.
“The increase in net profits was attributable to the share of profits from our subsidiaries: Oman Arab Bank (OAB) and National Life and General Insurance (NLG) and from our eight associate companies. In addition, significant income from other financial investments and a gain due to the business combination with ONIC Holding contributed to the growth in our profits,” Ominvest said in its chairman’s report, submitted to the Muscat Securities Market on Thursday.
The Ominvest management is implementing a growth strategy, following the merger with ONIC Holding. “We have already consolidated all financial, business and operating activities. The management is implementing a growth strategy and realising the synergies. We are confident that a much larger and more efficient Ominvest will play a key role in Oman’s economic growth, creating jobs opportunities for Omani nationals, helping businesses grow and attracting FDI into the country,” the report said.
Since Ominvest issued additional shares to complete its merger with ONIC Holding, the company said its equity base at the group level increased to RO226.09mn from RO132.03mn at the end of September 2014.
“From now on, our group consolidated financial performance will be a much better reflection of our overall performance,” Ominvest added.
Following the merger with ONIC Holding, Ominvest said the portfolio of its associate companies has expanded considerably. “Now, Ominvest has eight associate companies with a combined value of RO60.6mn, up from three associates with a value of RO6.2mn, as of last year. On an annual basis, our associate companies currently produce a total net profit of roughly RO30mn and our share in their profits stand around RO7.2mn. That’s a major source of new income stream for Ominvest.”
Ominvest’s banking subsidiary Oman Arab Bank (OAB) reported a profit of RO21.09mn for the nine-month period ended September 30 2015 compared with RO21.22mn for the same period in 2014.
National Life and General Insurance (NLG), Ominvest’s insurance subsidiary, reported a 56 per cent jump in net insurance premium to RO30.38mn from RO19.47mn last year, signifying the underlying growth in the broader insurance sector and gains in NLG’s market share.
Ominvest, however, said NLG during the nine-month period also incurred higher operating expenses to support growth and lower investment income due to weak capital market conditions. As a result, NLG’s net profit for the period fell 15 per cent to RO3.08mn from RO3.62mn a year earlier.
The Ominvest board announced on Sunday the holding of an ordinary general meeting on November 19. In light of the merger with ONIC Holding, the meeting will consider the election of a new board comprising ten directors from among shareholders.
SOURCE: MUSCAT DAILY