Ominvest’s net profit jumps 47% to RO30mn

February 27, 2019

Oman International Development and Investment Co (Ominvest) on Tuesday reported a strong set of results for the financial year ended December 31, 2018. Total group revenues rose 17 per cent to RO277.53mn and net profit attributable to Ominvest’s shareholders surged 47 per cent to RO30.52mn in 2018 compared to RO20.83mn reported in 2017.

In view of the company’s strong growth and robust profitability, Ominvest’s board of directors has recommended a total 25 per cent dividend (20 per cent cash dividend and five per cent stock dividend) for the shareholders’ approval at the company’s annual general meeting scheduled for March 26.

In a press release, Abdulaziz al Balushi, group chief executive officer of Ominvest attributed group’s strong performance to its major subsidiaries including Oman Arab Bank, National Life & General Insurance Co, Oman Real Estate Investment and Services Corporation and Jabreen Capital, and to its key associates.

In view of sizeable increase in Ominvest’s strategic investment holdings during 2018 and its share of recurring income from major subsidiaries and associates, Balushi opined that the company has further diversified its revenue sources and strengthened its cash flow position through attractive dividends from its major investments.

He said despite the difficult operating environment of the last four years in the region, Ominvest’s performance has been resilient. Particularly, in 2018, the company achieved important milestones in its key businesses and further diversified its strategic holdings.

Highlighting the critical importance of revenue growth and diversification, Balushi explained that as a result of successful implementation of its investment philosophy and business model, Ominvest has attained remarkable revenue diversification and significantly reduced downside risks to profitability.

Balushi said, “For instance, in December 2014, banking sector investments accounted for 82 per cent of Ominvest’s revenues, while by December 2018, banking sector accounted for just 44 per cent of its revenues as Ominvest’s new businesses in other sectors including insurance, leasing, and real estate have added additional revenue streams.”

While pursuing large-size value investments, Ominvest has further strengthened its balance sheet and capital structure. Last year, the company successfully raised and secured total funding facilities of over RO250mn at attractive terms from leading local and international banks and prominent Omani institutional investors.