The total revenue of MSM 30 Index companies, excluding investment holdings, for the first half of 2012 is estimated at RO 1.766 billion.

This amounts to an increase of 4.6 per cent year-on-year basis. Industrial and banking sector earnings continued to remain healthy led by stronger performance by the sector majors.

Cement, oil marketing, telecom, utilities and diversified industrial players are also expected to report stable growth in earnings in the same period. The overall revenue of the banking sector is estimated at RO 318.76 million, an increase of 10.1 per cent year-on-year basis, while total revenue of the industry sector is anticipated at RO 479.854 million. At the same time, the services sector is estimated to report total revenue growth of 5.9 per cent to RO 967.516 million.

'The banking sector growth is led by stronger credit off‐take, higher level of non core income and the stability of asset quality', says a research report by Gulf Baader Capital Market.

In the second quarter of 2012, the overall income of the banking sector is estimated at RO 160.066 million, an increase of 11.2 per cent on a year-on-year basis. The same is expected to increase marginally by 0.9 per cent on quarter to quarter basis.

The credit addition of the banks in the first quarter stood at RO 626.5 million as against an addition of RO 632.7 million in the final quarter of 2011.

'The credit addition continued to maintain higher level of growth rates led by revival in private sector credit in the first quarter coupled with higher project finance activities,' says the report.

BankMuscat is expected to report an earnings growth of 16.6 per cent on back of stronger asset addition and improved asset quality.

The earnings growth of Bank Sohar and ahlibank is estimated above 30.2 per cent and 29.9 per cent respectively.

BankDhofar is likely to report earnings worth RO 9.210 million, while NBO is estimated to report earnings growth of 9 per cent.
HSBC Bank Oman (the erstwhile Oman International Bank), is estimated to report earnings of about RO 4.006 million.

“The sector may see margin pressure owing to intense competition from Islamic Banking and the lower than estimated growth in high margin consumer lending”, adds the report.
Analysts at GBCM expect the cement sector to continue with its growth trend during the second quarter on the back of higher demand for cement in the domestic as well as export markets.

Oman Cement is expected to post an income of RO 5.570 million, an increase of 75 per cent on year on year, owing to strong core performance.

Raysut is expected to benefit higher consumption in both domestic and export markets and to post RO 7.260 million. High utilisation coupled with improved realisation is expected to drive the earnings of both Al Anwar Ceramics and Al Jazeera Steel.
Al Anwar has already started commercial production in its new line.

Dhofar Cattlefeed is expected to see stable core business growth, while the dividend income is likely to boost the earnings further. The commissioning of additional chicken capacity is set to drive the revenue as well as earnings of Asaffa Foods during the quarter.
On the back of declining copper prices, the revenue of Oman Cables is expected to lower while a moderate improvement in the net margins is expected due to lower commodity prices.

The subdued demand along with lower utilisation to keep earnings of National Aluminum Products at lower levels, says the research report.
Meanwhile, earnings of Galfar is expected to increase by 13 per cent led by contract additions and anticipated improvement in margins.

'The prevailing stable economic growth prospects, the ongoing project spending and creation of new jobs is in turn expected to reflect in the growth of services sector players', opines the report.

The sector earnings is estimated at RO 49.941 million, an increase of 3.2 per cent.