2009 oer's top 20

OER presents its annual ranking of the Sultanate’s Top 20 Listed

Companies of 2008

OMAN ECONOMIC REVIEW May 200948

or the sixth consecu-

tive year, 2008 has

been fairly positive

for Oman’s economy

in general due to the

growth in the first half

of 2008. The price of oil continued

to increase during the earlier part of

the year 2008. Oman crude realised

an average price of $101.06 per bar-

rel in 2008 compared with an average

price of $65.15 for 2007 and the budg-

eted price of $40 per barrel for 2008.

The original total appropriations for

the year 2008 of RO5,800mn were

substantially increased by a further

RO603mn to implement a number

of development and basic infrastruc-

ture projects. Due to the higher oil

prices the actual budget was projected

to close with a budgetary surplus of

RO1,581mn as against a projected def-

icit of RO400mn.

Market meltdownHowever, due to the global financial

meltdown, 2008 has been quite chal-

lenging for the Muscat Securities Mar-

ket (MSM). You may recall from our

statement last year that due to the

bursting of the ‘Credit Bubble’ in a

year that was full of bad news for de-

veloped markets, emerging markets

spent 2007 on another planet, with re-

turns of 35 per cent to 40 per cent. This

phenomenon continued till the middle

of 2008 but hit home with a vengeance

in the second half of 2008. The MSM

ended the year as the fourth best per-

forming stock market in the GCC with

an overall decline of 40 per cent. Two

successful IPOs were launched during

the first half of the year with unprec-

edented oversubscription of more than

25 times. Trading volumes amounted

to RO3,710mn in 2008 compared to

RO2,321mn in 2007, an increase of

59.8 per cent. The benchmark MSM 30

index ended the year at 5,441 points, a

loss of 39.78 per cent for the year. The

top performer was the services and in-

surance sector which was down 28 per

cent followed by the industry sector

which lost 45 per cent and the banking

Oman Economic Review presents its annual report on Oman’s Top 20 listed

companies for the year 2008

THE OER TOP TWENTY – YEaR 2008

The top five by revenue – 2008

Rank CompanyRevenue RO Mn

Growth % from 2007

1 Oman Telecommunications Co 411.49 12.74

2 Galfar Engineering & Contract 364.36 35.45

3 Bank Muscat 338.15 27.13

4 Shell Oman Marketing 326.36 31.60

5 Oman Cables 304.57 39.62

The top five by profit – 2008

Rank Company Profit RO MnGrowth % from

2007

1 Omantel 119.24 5.93

2 Bank Muscat 93.73 11.24

3 National Bank of Oman 45.38 1.71

4 Oman International Bank 29.47 4.98

5 Raysut Cement Company 27.10 (10.00)

Suhail Salim Bahwan Ex-chairman, NBO

COVER StORy


and investment sector was the worst hit

ending with a decrease of 46 per cent.

Foreign participation in the capital of

the listed joint stock companies also re-

duced during the year to 23.84 per cent

compared to 27.55 per cent last year, a

decrease of about 13 per cent.

Due to higher oil prices in the first half of

the year, increased non-oil exports and

strong demand, the GDP growth rate for

2008 is estimated at 10 per cent. Oil pro-

duction increased in 2008 by about sev-

en per cent. The government’s continued

emphasis on diversifying the economy

away from dependence on oil gained

further momentum during 2008. Non

oil exports grew by 27 per cent. Most

of the real estate development projects

started in 2007 continued and the

tourism sector grew by 22 per cent.

Performance of western world financial

markets continued to be greatly affected

due to the worldwide recession. MSCI

AC World index was down 43.5 per cent

in 2008 as global equity markets fin-

ished 2008 down 43.5 per cent. Japan

(-30.5 per cent) was the best performing

region followed by the USA (-38.5 per

cent) and Europe (-48.2 per cent). The

worst performing regions were Global

Emerging Markets (-54.5 per cent) and

Asia Pac ex-Japan (-53.3 per cent).

Recessions are historically times when

companies make the biggest competi-

tive strides or fall behind. A 2002 sur-

vey by McKinsey of the performance

of 1000 companies during an 18 year

period found that those that made the

biggest leaps in profitability were often

the ones that increased their spend-

ing on acquisitions and innovation the

most amid recessions.

During the year 2008, the revenues of

Oman’s 20 largest companies showed a

handsome growth. Total revenues for

the OER Top 20 went up by 25 per cent

to RO3,220mn. Corporate perform-

ance of the year 2008, overall, was also

slightly positive in spite of the global

recession. The profits for the year 2008

increased by four per cent to RO480mn

from the figure of RO462mn last year.

The total market cap of the OER Top 20

on December 31, 2008 was RO3,975mn,

which was down by 44 per cent com-

pared to 2007. On April 2, 2009, the

market cap of the top twenty has once

again gone down to RO3,281mn. The

OER Top 20 companies represent

68 per cent to the total market cap of

the MSM of RO5,829mn at the end

of 2008. The average P/E ratio of the

OER Top 20 based on the profits of the

year 2008 and the share price on April

2, 2009 is 6.84 times earnings.

Who is out and who is inWe have two new comers on the list

this year. Oman Flour Mills comes into

the number 18 spot and Al Hassan En-

gineering is back in the number 20 slot

after missing out last year. These com-

panies have made it to the OER Top 20

this year at the expense of AES Barka

and Oman Refreshment.

The ranking of Oman’s 20 largest com-

panies in order of revenue produces a

The top five by growth of profit – 2008

Rank CompanyGrowth % from

2007

1 Al Anwar Holdings 99.86

2 Oman Flour Mills 91.97

3 Oman Holdings International 51.21

4 Renaissance Services 51.06

5 Areej Vegetable Oils 24.50

The top five highest capitalised – 2008

Rank CompanyShareholders Equity RO Mn

1 Bank Muscat 715

2 Omantel 373

3 National Bank of Oman 245

4 Bank Dhofar 188

5 Oman International Bank 173

COVER StORy

Sultan Bin Hamdoon Al Harthy Chairman, Omantel

COVER StORy


list, which includes the seven compa-

nies from the banking and investment

sector, six from the services sector and

seven from the industrial sector.

There has been no change in the top

ten companies in Oman by revenues.

Omantel continues to be the largest

public company in Oman with a growth

in revenue of 12.74 per cent compared

to last year.

The Chairman of Omantel Eng. Sultan

Bin Hamdoon Al Harthy in his report

to the shareholders explains that the

main reason for good growth in net

profit is the continuous double digit

revenue growth. Al Harthy states that

the total group revenue rose by 12.6

per cent. Al Harthy outlines that the

total group net profit after tax rose

by 5.9 per cent to RO118.6mn. Al

Harthy adds that the total subscriber

base has recorded a growth of 13.4 per

cent. The total number of subscribers

has increased to 2.119mn compared

to 1.869mn last year. Al Harthy goes

on to state that due to the global fi-

nancial crisis and the deteriorating

market conditions in Pakistan, the

value of their strategic investment in

Worldcall Telecom has been affected

and the group has recognised an im-

pairment loss of RO18.88mn. Without

this impairment the net profit would

have been RO137.5mn, a growth

of 22.8 per cent.

Al Harthy cautions that during the year

2009 the sector liberalisation is likely to

intensify with the TRA announcement

of awarding Oman’s second fixed line

network and possible award of more

Internet service providers in 2009. He

adds that the government plan to sell

25 per cent of its stake in Omantel to

a strategic investor has been called off

because of the current conditions in the

global capital markets.

Profit indexSimilar to last year, three of the

top five most profitable companies

in Oman are banks. As expected in

the current economic climate four

of the five companies are showing a

small growth in profits for the year

whereas one is showing a decline.

There is one change in the top five

companies by profit. Raysut Cement,

which was in the fourth place last

year, has moved down to the number

five position and OIB is up from five

to four. Omantel continues to remain

at the number one spot, Bank Muscat

at the number two spot and NBO at

number three.

Bank Muscat is the second most profit-

able company in Oman as well as the

third largest company in Oman based

on turnover for the year 2008. Bank

Muscat has achieved this position by

recording growth in profit for the year

of about 11.24 per cent.

The Chairman Abdul Malik bin Abdul-

lah al Khalili states in his yearend re-

port to the shareholders that despite

the global financial crisis the key busi-

ness lines of the bank continued to turn

in an impressive performance in 2008.

Khalili adds that during 2008, the re-

turn on average assets was at 1.8 per

cent compared to 2.3 per cent in 2007.

The return on average equity was 14.8

per cent in 2008 compared to 25.8 per

cent in 2007 and the basic earnings per

share was RO0.087 as against RO0.090

in 2007.

Khalili explains that their strategic

shareholding in Saudi Pak Commercial

Bank was impaired due to the deteriorat-

ing economic situation in Pakistan and

even though this investment is strategic

in nature as a measure of prudence the

bank has provided for an impairment

loss of RO17mn for this investment.

Khalili goes on to say that the Board has

proposed a dividend of 50 per cent, 20

per cent in the form of cash and 30 per

cent in the form of mandatory-convert-

ible bonds. He advises that the 2009

financial market environment appears

to be challenging for business with tight

liquidity conditions, weak equity mar-

ket and tightened lending norms by

banks. Khalili is confident that the bank

The top five largest market capitalisation – Apr 2, 2009

Rank CompanyMarket

Capitalisation RO Mn

1 Omantel 881

2 Bank Muscat 629


4 Bank Dhofar 269


The top five returns on equity – 2008

Rank Company Profit as a % of Equity

1 Shell Oman Marketing 46.62

2 Omantel 31.99

3 Oman Oil Marketing 30.06


5 OMINVEST 28.09

Abdul Malik al Khalili Chairman, BankMuscat

AAAAAFFFFFFFFFFOOOOORRRRRDDDDDDDDAAAAAABBBBBLLLLLEEE

PPRRRIIICCCEEESSSS

AFFORDABLE

PRICES

COVER StORy


will sail through these turbulent times.

Tops turvyAl Anwar Holdings has shown the high-

est growth in profits by an enormous

99.86 per cent and has remained in the

number one spot for the second year

running. Three of the top five compa-

nies showing highest growth of profit

from last year being Oman Flour Mills,

Renaissance and Areej Vegetable Oil

are new on the list. Al Jazeera Steel,

OMINVEST and Al Maha Petroleum

have all dropped off this list.

The Chairman of Al Anwar, Masoud

Humaid Al Harthy in his report to the

shareholders for the year ended March

31, 2008 has stated that new business

strategies; investment policies and pro-

cedures; and risk management tools

introduced by the management in the

second half of the year has contributed

in the continued sustainable growth of

the company. The group has recorded

100 per cent growth in profits over last

year achieving its highest ever net profit

of RO4.33mn for the year ended March

31, 2008. He points out that out of this

profit RO1.13mn is generated from dis-

posal of 31 per cent shareholding in

NAPCO. The board has recommended

a cash dividend of eight per cent and a

stock dividend of 12.93 per cent.

Al Harthy adds that the group’s subsid-

iaries Voltamp Manufacturing and Sun

Packaging are all performing well as are

its associates NAPCO, Al Anwar Blank,

Falcon Insurance, Al Maha Ceramics

and Addax Securities Saudi Arabia. Al

Harthy explains that the group contin-

ues to focus on the financial services

and real estate sectors.

Four of the top five companies that

have the highest amount of equity em-

ployed are banks. Four of the compa-

nies in this category remain the same

as last year. BankMuscat continues to

remain number one in this category.

Omantel and NBO continue to remain

in the same position as they were last

year. Bank Dhofar, a newcomer on the

list, comes in at number four knocking

OIB down to the number five position.

Oman Cement which was number five

last year is no longer on this list.

The then chairman of NBO Suhail Sal-

im Bahwan in his report to the share-

holders states that the bank’s net profit

of RO45.4mn exceeds last year’s record

net profit of RO44.6mn despite a very

turbulent fourth quarter and after im-

pairment charge of RO3.7mn on in-

vestments. Bahwan adds that the profit

from operations grew by 49 per cent

from RO36mn to RO54mn reflecting

the bank’s clear emphasis on sustain-

able growth. He explains that the bank

has diversified its income as reflected

in ratio of other operating income to

total income which increased from 37

per cent in 2007 to 46 per cent in 2008.

Business efficiency remained an impor-

tant focus and the improvement in cost

to income ratio continues to improve.

The recoveries and releases against the

provisions for 2008 were at RO16.6mn.

The top five earnings per share – 2008

Rank CompanyEarnings per share

growth %


2 Al Anwar 63.33



5 Shell 13.02

The top five by share price growth – 2008

Rank CompanyShare price growth %

1 Oman Oil Marketing 16.03

2 Shell 10.53

3 Al Hassan 8.26

4 Omantel (8.56)

5 Al Maha (9.09)

Samir Fancy Chairman, Renaissance Services

COVER StORy


Total assets ended the year at RO1.9bn.

This growth was linked to the growth in

deposits by RO406mn (43 per cent) and

growth in net advances by RO494mn

(54 per cent).

Bahwan goes on to say that 2009 will

pose significant challenges in the inter-

national debt and capital markets. The

global economy is expected to continue

to suffer under the impact of a pro-

longed recession. In the GCC region,

lower oil prices are expected to slow

the growth in the region. Bahwan states

that the bank will continue to grow in a

prudent and profitable manner by tar-

geting quality assets in Oman and the

UAE with the overall objective of en-

hancing shareholder value.

Sea changeThis year, only one of the top five com-

panies that have the highest market

capitalisation on the MSM is not a bank.

Omantel has taken over from Bank

Muscat as the number one this year;

BankMuscat has slipped to the number

two spot in this category. NBO is a new-

comer to this list straight into third

place, Bank Dhofar has jumped up one

place to the fourth position and OIB is a

newcomer in the number five position.

Raysut Cement and Galfar who were

number three and four last year are both

knocked out from this list.

The chairperson of Oman International

Bank, Reem Omar Zawawi in her annu-

al report to the shareholders states that

2008 was another successful year for the

bank with record profitability. Zawawi

adds that the business philosophy of the

bank is to continue to deliver consistent

returns to the shareholders backed by

a determination to pursue growth with

prudent risk management.

Zawawi explains that the bank achieved

a net profit of RO29.47mn for the year

2008 compared to RO28.07 for 2007,

an increase of 4.97 per cent. The bank

commands a market share of 8.23 per

cent for deposits and 7.4 per cent for

loans and 7.77 per cent for total assets

as at December 31, 2008 as per the

consolidated statistics from the Cen-

tral Bank of Oman. In the light of these

results the board of directors has pro-

posed a cash dividend of 27 per cent.

Zawawi states that the bank looks to the

future with conservatism, confidence

and optimism. The government poli-

cies continue to focus on strong eco-

nomic growth with expenditure up 11

per cent and revenue by four per cent.

In the future the bank will increase its

delivery channels in terms of new state

of the art branches, ATMs, PoS (point

of sales) and customer friendly mobile

banking services. She adds that the

bank will make optimum use of these

channels to redefine customer conven-

ience and thereby acheive continous

sustainable growth.

Interestingly, only one of the top five

companies showing the best return on

equity employed comes from the bank-

ing sector. Four of the companies in

the top five are newcomers to the list.

Shell steps up to the number one spot

from being No.2 last year; Omantel,

Oman Oil, Al Anwar and OMINVEST

take the two to five positions knocking

out Oman Cables, AES Barka, OHI and

Raysut Cement who appeared in this

table last year.

Andrew Wood, Chairman of Shell

Oman Marketing, in his report to the

shareholders states that overall the

company remained the market leader

amongst oil marketing companies op-

The best five by dividend yields – 2008

Rank CompanyDividend Yield

per cent



3 Oman International Bank 12.27

4 Al Hassan Engineering 11.01

5 Raysut Cement 9.07

Andrew Wood, Chairman, Shell Oman Marketing

AZAIBA VILLAS - OMAN

Oman • Dubai • Abu Dhabi • Sharjah • Jordan • Kuwait England • Switzerland

GARDEN VILLAS - JORDAN

Main Branch Ofce – Tel: 24483606 • Fax: 24483717

Muscat City Center – Tel: 24558606 • Fax: 24558505

Email: [email protected]

MAYAR AL KHOUD - OMAN

COVER StORy

erating in Oman. Wood adds that the

company achieved unprecedented fi-

nancial results recording a historically

highest ever net profit of RO12.5mn

compared to previous year’s net profit

of RO11.06mn. Despite the uncertainty

surrounding the major economies and

Oman’s economy, proactive manage-

ment as well as sound operational per-

formance were the principal drivers of

the commendable financial perform-

ance in 2008. Wood explains that the

retail business remains the most im-

portant segment for the company. To-

tal retail volumes sold was in excess of

1.3bn litres. The aviation business saw

over 50 per cent increase in volumes

in 2008. The market penetration in

the lubricants market also registered

record level of sales volume.

The board has recommended a final

dividend of 115 per cent for the year

continuing the recent trend of year on

year dividend growth. Wood adds that

the fuels market normally follows the

economic trend of the country and is

thus expected to see some uncertainty

due to the volatility of the global oil

prices. The Sultanate will not be en-

tirely immune from the current global

recession and demand, especially in

the commercial and aviation sectors

which, may be affected as tourism and

development projects slow down. The

Reem Omar Zawawi, Chairperson, Oman International Bank

AZAIBA VILLAS - OMAN

Oman • Dubai • Abu Dhabi • Sharjah • Jordan • Kuwait England • Switzerland

GARDEN VILLAS - JORDAN

Main Branch Ofce – Tel: 24483606 • Fax: 24483717

Muscat City Center – Tel: 24558606 • Fax: 24558505

Email: [email protected]

MAYAR AL KHOUD - OMAN

COVER StORy


retail segment on the other hand is not

expected to be affected.

Three of the top five earnings per share

growth companies are newcomers

on this list. Oman Flour Mills jumps

straight into number one spot pushing

Al Anwar down to the second position.

Renaissance comes in at the number

three position, OHI continues to re-

main in the number four position and

Shell comes into the number five spot.

Al Jazeera Steel, OMINVEST and Al

Maha Petroleum are all out.

Samir Fancy, Chairman of Renais-

sance, in his report to the shareholders

states that Renaissance has achieved

record results for the seventh consecu-

tive year. The consequence of contin-

ued focus on values-driven operating

model is, yet another year of growth

and record financial performance.

Revenues of RO234mn are up from

RO199mn in 2007. Revenue increased

by 17.6 per cent, operating profit has in-

creased by 35.8 per cent and operating

margins improved from 13.8 per cent

in 2007 to 16 per cent in 2008. The net

profit of 2008 includes a capital gain of

RO4.8mn from the divestment of the

group’s former technology business.

For the current fiscal year the board has

recommended a cash dividend of 10

per cent and a stock dividend of 15 per

cent. Looking ahead, Fancy states that

it is clear that the prognosis for Renais-

sance is good for continued growth in

2009, in spite of the recession. As usu-

al, performance will not be even across

each quarter. The first quarter of the

year we have usual seasonal effect of

winter downtime in the northern Cas-

pian and in Q1 and Q2, 2009 we have

a major programme of dry-docking

that will ensure Q3 and Q4 will likely

record the best financial performances

of the year ahead. Going into 2009,

Fancy states that the company does not

underestimate the challenges of the re-

cession but is taking all prudent meas-

ures necessary to avert its dangers. He

further states that they have the right

businesses, with the right customers, in

the right markets and have the right as-

sets and above all the right people.

Role reversalAll of the five companies on the share-

price growth list are newcomers with

Oman Oil taking the top position. Shell

Marketing comes in second followed by

Al Hassan Engineering, Omantel and Al

Maha Petroleum. Al Anwar Holdings,

Renaissance Services, Oman Cables,

Bank Dhofar and Raysut Cement from

last year have all been knocked out.

Salim Abdullah Al Rawas, Chairman

of Oman Oil Marketing in his report

to the shareholders states that 2008

was another successful year for the

company. The total revenue increased

by 11 per cent to RO170mn from the

previous year’s 152.7mn. The revenue

growth was due to improved sales re-

corded for most products as well as

higher product prices in line with the

international prices. As a result the

company’s pre-tax profit rose by 12 per

cent to RO7.2mn.

The board of directors recommended

a final dividend of 35 per cent for the

financial year 31 December 2008. Al

Rawas states that the outlook for the

coming year appears to be positive with

the demand for petroleum products

expected to grow in line with Oman’s

projected economic growth. He adds

that the company has placed itself in

a strong position for the future. None-

theless competition in all business

sectors particularly in the retail busi-

ness will continue to persist. With ever

increasing competition in the market

and aggressive efforts by the competi-

tors, the company will remain focused

on expanding its network of facilities,

improving quality of its products and

services, optimising costs and develop-

ing its human capital even further.

Three new companies have entered the

ranking of the best five dividend yield

companies. Oman Flour Mills, Al Has-

san and Raysut Cement are newcomers

in number one, four and five slots. OHI

jumps up to number two from number

five last year and OIB retains the third

position.

Manal Mohammad Al Abdawani, Chair-

person of Oman Flour Mills in her report

to the shareholders for the year ended

June 30, 2008 states that while there

has been remarkable improvement in

Manal Mohammad Al Abdawani, Chairperson, Oman Flour Mills

COVER StORy


the demand for their flour products,

which increased by six per cent in the

local market compared to last year, the

company’s fodder sales fell by eight per

cent compared to previous year because

of the shortage of fodder raw material.

The total sales amounted to 324,000

metric tons which covers 65 per cent of

the flour market in the Sultanate.

Al Abdawani adds that the company

exerted relentless efforts to improve

its operating performance. The com-

pany achieved impressive results for

the year ended June 30, 2008. The net

profit for the year was RO7.5mn com-

pared to RO4mn for the previous year

an increase of 87 per cent. The com-

pany along with its subsidiaries made

a net profit of RO8.1mn compared to

RO4.2mn in the previous year.

Based on the good results achieved, the

board has recommended a dividend of

25 per cent for the year. Al Abdawani

explains that the company is continu-

ing to improve operating efficiency

through diversifying its investments

in equipment like the ship un-loader

that increases the discharge capacity

thereby reducing cost. The company is

also working to add other equipment

in order to improve overall produc-

tion efficiency. The company has also

established a subsidiary ‘Bread House’

to market frozen bakery products and

will establish an industrial bakery, the

commercial production of which is ex-

pected to commence in 2009.

The figures and the lead analy-

sis for the listing was done by

Mukhtar Hasan. He is a Fellow

of the Institute of Chartered Ac-

countants in England and Wales

and holds a Corporate Finance

Qualification issued jointly by this

Institute together with the Securi-

ties Investment Institute and the

Chartered Accountants of Canada.

Currently, he is on the board of several public companies, in-

cluding Gulf Investment Services, Gulf Mushroom and Muscat

Thread Mills in Oman.

The data has been verified by KPMG – a global network of

professional firms providing audit, tax, and advisory services.

They operate in 144 countries and have more than 137,000

professionals working in member firms around the world.

KPMG is one of the leading accredited accounting firms in

Oman and has more than 100 employees including 3 Partners,

3 Directors, and 21 Managers. KPMG Oman has 23 Omanis

who are currently training for ACCA. KPMG has many years

of experience in the Middle East. They have a reputation for

providing quality professional services to well-diversified cli-

ent portfolio, both in public and private sectors.

DEFINITIONS AND EXPLANATIONSRevenues:All companies on the list are derived from the published ac-

counts submitted to the Muscat Securities Market (MSM).

Therefore, closed Joint Stock Companies and private com-

panies and establishments are excluded from this list. These

companies are, in the first instance, ranked by Revenues. All

the other rankings shown on the table do not consider any

other companies that do not make the list on the basis of Rev-

enue. In the case of banks the gross interest income as well as

other operating income together is considered as their revenue

for this purpose. In the case of insurance companies, the gross

premium written as well as investment income together is

considered as their revenue for this purpose. All figures are for

the year ended 31 December 2008, unless otherwise stated.

ProfitsProfits are shown after taxes and all charges including extra-

ordinary charges. Figures in brackets indicate a loss. All loss-

es and negative growth are also ranked where possible.

AssetsAssets shown are as per the balance sheet at the end of the

year. It is the total of Fixed as well as the current assets.

Shareholders’ EquityShareholders Equity is the paid up capital of the company,

retained earnings, and statutory and all other reserves as well

as share premium.

Market CapMarket capitalisation figure has been arrived at by mul-

tiplying the total number of outstanding shares of the

company by the price per share as of close of business on

April 2, 2009.

Earnings per shareThe earnings per share are as declared by the company in its

published financial statements.

Dividend YieldThe dividend yield figure is calculated on the basis of divi-

dend declared in the financial statements for 2008 against

the share price at close of business on 31 December 2008.

Price Earnings ratioThis ratio has been calculated by dividing the price per share

by the earnings per share as at December 31, 2008.

MEtHODOLOGy

COVER StORy


Rank Company Revenue Profits Profit as % of

revenues Profit as %

assets Profit as %

equity Earnings per share Dividend yield Dividend per share Sector

Share price P/E ratio

2008 2007 2008

(RO MN) 2007

(RO MN)

Growth % from 2007

2008 (RO MN)

2007 (RO MN)

Rank Growth % from 2007

Rank % Rank % Rank % Rank2008 (RO)

2007 (RO)

Growth %

Rank2008

%2007

% Growth

%2008 (RO)

2007 (RO)

Rank31-Dec-08 (RO per sh)

31-Dec-07 (RO per sh)

Growth %

Rank 2-Apr-09 2-Apr-09

1 1 OMAN TELECOMMUNICATIONS CO. 411.49 365 12.74 119.24 113 1 5.93 10 28.98 6 20.19 3 31.99 2 0.158 0.149 6.04 7 6.30 5.80 8.56 0.100 0.100 9 Services 1.588 1.724 (8.56) 4 1.175 7.44

2 2 GALFAR ENGINEERING AND CONTRACTING *1 364.36 269 35.45 23.11 22 8 4.31 13 6.34 13 6.23 11 27.73 6 0.092 0.103 (10.68) 14 4.32 2.74 57.45 0.020 0.040 12 Services 0.463 1.458 (214.90) 16 0.464 5.04

3 3 BANK MUSCAT * 2 338.15 266 27.13 93.73 84 2 11.24 8 27.72 7 1.55 20 13.11 17 0.087 0.090 (3.33) 10 2.51 2.70 (7.10) 0.020 0.050 17 Banking & Inv 0.797 1.851 (132.25) 13 0.584 6.71

4 4 SHELL OMAN MARKETING COMPANY 326.36 248 31.60 12.50 11 11 13.04 6 3.83 16 21.41 2 46.62 1 0.125 0.111 13.02 5 6.44 6.88 (6.46) 0.115 0.110 8 Services 1.786 1.598 10.53 2 1.751 14.01

5 5 OMAN CABLES INDUSTRY 304.37 218 39.62 6.13 15 16 (59.48) 20 2.01 19 4.46 14 19.02 13 0.068 0.169 (59.76) 19 2.23 1.50 48.94 0.020 0.040 18 Industry 0.896 2.669 (197.88) 14 0.739 10.87

6 6 RENAISSANCE SERVICES *3 234.26 199 17.72 26.19 17 6 51.06 4 11.18 10 7.04 10 20.91 11 0.103 0.078 32.05 3 1.61 1.15 40.65 0.010 0.015 20 Services 0.620 1.308 (110.97) 12 0.463 4.50

7 7 AL MAHA PETROLEUM 191.65 175 9.52 7.34 7 14 7.08 9 3.83 15 15.76 5 26.64 9 1.065 1.140 (6.58) 12 4.13 3.03 36.36 0.500 0.400 13 Services 12.100 13.200 (9.09) 5 9.006 8.46

8 8 OMAN OIL MARKETING COMPANY 170.04 153 11.14 6.32 6 15 11.31 7 3.72 17 15.59 6 30.06 3 0.098 0.088 11.36 6 2.89 4.68 (38.13) 0.035 0.048 15 Services 1.210 1.016 16.03 1 1.175 11.99

9 9 NATIONAL BANK OF OMAN 130.83 101 29.54 45.38 45 3 1.71 15 34.68 3 2.29 17 18.49 14 0.042 0.049 (14.29) 15 4.79 23.31 (79.43) 0.018 0.175 11 Banking & Inv 0.365 0.751 (105.67) 11 0.277 6.60

10 10 OMAN HOLDINGS INTERNATIONAL * 4 91.10 73 25.07 8.80 6 12 51.21 3 9.66 11 9.71 8 27.54 8 0.735 0.561 31.02 4 25.00 4.88 412.50 0.250 0.200 2 Banking & Inv 1.000 4.100 (310.00) 17 1.000 1.36

11 16 AREEJ VEGETABLE OILS & DERIVATIVES *5 90.67 53 71.08 1.50 1 20 24.50 5 1.66 20 4.88 12 23.20 10 0.436 0.525 (16.95) 16 8.00 1.78 350.00 0.080 0.080 6 Industry 1.000 4.500 (350.00) 18 1.000 2.29

12 11 RAYSUT CEMENT COMPANY 89.08 63 41.37 27.10 30 5 (10.00) 17 30.43 4 23.04 1 27.64 7 0.136 0.151 (9.93) 13 9.07 5.01 80.87 0.100 0.100 5 Industry 1.103 1.995 (80.87) 8 1.026 7.54

13 13 BANK DHOFAR * 6 80.57 65 23.96 23.68 23 7 3.93 14 29.40 5 1.79 19 12.57 18 0.044 0.043 2.33 9 4.07 3.72 9.27 0.015 0.025 14 Banking & Inv 0.369 0.672 (82.11) 9 0.380 8.64

14 17 AL JAZEERA STEEL PRODUCTS COMPANY 78.43 45 74.30 1.71 2 19 5.42 11 2.19 18 2.15 18 5.53 20 0.014 0.023 (39.13) 17 2.65 0.00 2.65 0.007 0.000 16 Industry 0.264 0.432 (63.64) 7 0.220 15.71

15 15 OMAN CEMENT COMPANY 63.52 50 27.05 12.54 17 10 (27.38) 19 19.74 8 9.43 9 10.63 19 0.022 0.532 (95.86) 20 7.31 4.22 73.11 0.022 0.270 7 Industry 0.301 6.395 (2024.58) 20 0.352 16.00

16 12 OMAN INTERNATIONAL BANK 59.31 68 (12.77) 29.47 28 4 4.98 12 49.69 1 2.89 15 17.08 16 0.032 0.031 3.23 8 12.27 51.84 (76.33) 0.027 0.210 3 Banking & Inv 0.220 0.405 (84.14) 10 0.283 8.84

17 14 OMINVEST * 7 54.41 59 (7.78) 20.37 27 9 (24.24) 18 37.45 2 2.60 16 28.09 5 0.046 0.096 (52.08) 18 2.04 3.89 (47.48) 0.010 0.030 19 Banking & Inv 0.490 0.772 (57.55) 6 0.273 5.93

18 N/A OMAN FLOUR MILLS COMPANY *8 50.74 35 45.64 8.06 4 13 91.97 2 15.89 9 17.22 4 19.59 12 0.512 0.267 91.76 1 121.95 8.00 1424.39 0.250 0.200 1 Industry 0.205 2.500 (1119.51) 19 0.315 0.62

19 19 AL ANWAR HOLDINGS *9 45.37 37 22.62 4.33 2 17 99.86 1 9.55 12 12.89 7 28.14 4 0.049 0.030 63.33 2 5.67 1.14 395.89 0.008 0.005 10 Banking & Inv 0.141 0.437 (209.93) 15 0.172 3.51

20 N/A AL HASSAN ENGINEERING COMPANY 45.03 35 27.89 2.02 2.1 18 (4.58) 16 4.49 14 4.48 13 17.14 15 0.027 0.028 (3.57) 11 11.01 12.00 (8.26) 0.012 0.012 4 Industry 0.109 0.100 8.26 3 0.190 7.04

THE OER TOP 20 COMPANIES FOR 2008

1. Galfar has issued a 20% stock dividend, which has not been taken into

account in the calculation of the dividend yield.

2. Bank Muscat has issued a 30% convertible bonds as dividend, which has not

been taken into account in the calculation of dividend yield.

NOTES 3. Renaissance Services has issued 15% stock dividend, which has not been

taken into account in the calculation of dividend yield.

4. The financial statements of OHI are as at 31March 2008, which is their

financialyear-end.OHIhasissued5.56%stockdividend,whichhasnotbeen


COVER StORy


Rank Company Revenue Profits Profit as % of

revenues Profit as %

assets Profit as %

equity Earnings per share Dividend yield Dividend per share Sector

Share price P/E ratio

2008 2007 2008

(RO MN) 2007

(RO MN)

Growth % from 2007

2008 (RO MN)

2007 (RO MN)

Rank Growth % from 2007

Rank % Rank % Rank % Rank2008 (RO)

2007 (RO)

Growth %

Rank2008

%2007

% Growth

%2008 (RO)

2007 (RO)

Rank31-Dec-08 (RO per sh)

31-Dec-07 (RO per sh)

Growth %

Rank 2-Apr-09 2-Apr-09

1 1 OMAN TELECOMMUNICATIONS CO. 411.49 365 12.74 119.24 113 1 5.93 10 28.98 6 20.19 3 31.99 2 0.158 0.149 6.04 7 6.30 5.80 8.56 0.100 0.100 9 Services 1.588 1.724 (8.56) 4 1.175 7.44

2 2 GALFAR ENGINEERING AND CONTRACTING *1 364.36 269 35.45 23.11 22 8 4.31 13 6.34 13 6.23 11 27.73 6 0.092 0.103 (10.68) 14 4.32 2.74 57.45 0.020 0.040 12 Services 0.463 1.458 (214.90) 16 0.464 5.04

3 3 BANK MUSCAT * 2 338.15 266 27.13 93.73 84 2 11.24 8 27.72 7 1.55 20 13.11 17 0.087 0.090 (3.33) 10 2.51 2.70 (7.10) 0.020 0.050 17 Banking & Inv 0.797 1.851 (132.25) 13 0.584 6.71

4 4 SHELL OMAN MARKETING COMPANY 326.36 248 31.60 12.50 11 11 13.04 6 3.83 16 21.41 2 46.62 1 0.125 0.111 13.02 5 6.44 6.88 (6.46) 0.115 0.110 8 Services 1.786 1.598 10.53 2 1.751 14.01

5 5 OMAN CABLES INDUSTRY 304.37 218 39.62 6.13 15 16 (59.48) 20 2.01 19 4.46 14 19.02 13 0.068 0.169 (59.76) 19 2.23 1.50 48.94 0.020 0.040 18 Industry 0.896 2.669 (197.88) 14 0.739 10.87

6 6 RENAISSANCE SERVICES *3 234.26 199 17.72 26.19 17 6 51.06 4 11.18 10 7.04 10 20.91 11 0.103 0.078 32.05 3 1.61 1.15 40.65 0.010 0.015 20 Services 0.620 1.308 (110.97) 12 0.463 4.50

7 7 AL MAHA PETROLEUM 191.65 175 9.52 7.34 7 14 7.08 9 3.83 15 15.76 5 26.64 9 1.065 1.140 (6.58) 12 4.13 3.03 36.36 0.500 0.400 13 Services 12.100 13.200 (9.09) 5 9.006 8.46

8 8 OMAN OIL MARKETING COMPANY 170.04 153 11.14 6.32 6 15 11.31 7 3.72 17 15.59 6 30.06 3 0.098 0.088 11.36 6 2.89 4.68 (38.13) 0.035 0.048 15 Services 1.210 1.016 16.03 1 1.175 11.99

9 9 NATIONAL BANK OF OMAN 130.83 101 29.54 45.38 45 3 1.71 15 34.68 3 2.29 17 18.49 14 0.042 0.049 (14.29) 15 4.79 23.31 (79.43) 0.018 0.175 11 Banking & Inv 0.365 0.751 (105.67) 11 0.277 6.60

10 10 OMAN HOLDINGS INTERNATIONAL * 4 91.10 73 25.07 8.80 6 12 51.21 3 9.66 11 9.71 8 27.54 8 0.735 0.561 31.02 4 25.00 4.88 412.50 0.250 0.200 2 Banking & Inv 1.000 4.100 (310.00) 17 1.000 1.36

11 16 AREEJ VEGETABLE OILS & DERIVATIVES *5 90.67 53 71.08 1.50 1 20 24.50 5 1.66 20 4.88 12 23.20 10 0.436 0.525 (16.95) 16 8.00 1.78 350.00 0.080 0.080 6 Industry 1.000 4.500 (350.00) 18 1.000 2.29

12 11 RAYSUT CEMENT COMPANY 89.08 63 41.37 27.10 30 5 (10.00) 17 30.43 4 23.04 1 27.64 7 0.136 0.151 (9.93) 13 9.07 5.01 80.87 0.100 0.100 5 Industry 1.103 1.995 (80.87) 8 1.026 7.54

13 13 BANK DHOFAR * 6 80.57 65 23.96 23.68 23 7 3.93 14 29.40 5 1.79 19 12.57 18 0.044 0.043 2.33 9 4.07 3.72 9.27 0.015 0.025 14 Banking & Inv 0.369 0.672 (82.11) 9 0.380 8.64

14 17 AL JAZEERA STEEL PRODUCTS COMPANY 78.43 45 74.30 1.71 2 19 5.42 11 2.19 18 2.15 18 5.53 20 0.014 0.023 (39.13) 17 2.65 0.00 2.65 0.007 0.000 16 Industry 0.264 0.432 (63.64) 7 0.220 15.71

15 15 OMAN CEMENT COMPANY 63.52 50 27.05 12.54 17 10 (27.38) 19 19.74 8 9.43 9 10.63 19 0.022 0.532 (95.86) 20 7.31 4.22 73.11 0.022 0.270 7 Industry 0.301 6.395 (2024.58) 20 0.352 16.00

16 12 OMAN INTERNATIONAL BANK 59.31 68 (12.77) 29.47 28 4 4.98 12 49.69 1 2.89 15 17.08 16 0.032 0.031 3.23 8 12.27 51.84 (76.33) 0.027 0.210 3 Banking & Inv 0.220 0.405 (84.14) 10 0.283 8.84

17 14 OMINVEST * 7 54.41 59 (7.78) 20.37 27 9 (24.24) 18 37.45 2 2.60 16 28.09 5 0.046 0.096 (52.08) 18 2.04 3.89 (47.48) 0.010 0.030 19 Banking & Inv 0.490 0.772 (57.55) 6 0.273 5.93

18 N/A OMAN FLOUR MILLS COMPANY *8 50.74 35 45.64 8.06 4 13 91.97 2 15.89 9 17.22 4 19.59 12 0.512 0.267 91.76 1 121.95 8.00 1424.39 0.250 0.200 1 Industry 0.205 2.500 (1119.51) 19 0.315 0.62

19 19 AL ANWAR HOLDINGS *9 45.37 37 22.62 4.33 2 17 99.86 1 9.55 12 12.89 7 28.14 4 0.049 0.030 63.33 2 5.67 1.14 395.89 0.008 0.005 10 Banking & Inv 0.141 0.437 (209.93) 15 0.172 3.51

20 N/A AL HASSAN ENGINEERING COMPANY 45.03 35 27.89 2.02 2.1 18 (4.58) 16 4.49 14 4.48 13 17.14 15 0.027 0.028 (3.57) 11 11.01 12.00 (8.26) 0.012 0.012 4 Industry 0.109 0.100 8.26 3 0.190 7.04

THE OER TOP 20 COMPANIES FOR 2008

COVER StORy

5. Areej Vegetable has declared a stock dividend of 33.3% which has not been


6. BankDhofarhasissuedastockdividendof4.5%,whichhasnotbeentaken

into account in the calculation of dividend yield.

7. OMINVEST has declared a stock dividend of 11.1%, which has not been


8. The Financial statements of Oman FlourMills are as on June 30, 2008,

whichistheirfinancialyearend.

9. Al Anwar has declared a stock dividend of 12.93%, which has not been taken

into account in the calculation of dividend yield.


Milestones1. The operating margins of the company improved from

13.8 per cent to 16 per cent in a year hampered by severe inflationary pressure.

2. Topaz Marine acquired Doha Marine Services for $127mn thereby increasing its OSV fleet size by 14 vessels and strengthening its spread in the Northern Gulf. Topaz Marine has kept its entire fleet 100 per cent operational during the recession.

3. The Contract Services Group was awarded two major contracts by Petroleum Development Oman to build, own and operate new Permanent Accommodation for Contractors facilities in Oman’s interior oilfields at Marmul and Bahja. The long term contracts run until 2044 with an initial 5-year value of $91mn.

4. BUE Marine was awarded a 10-year $225mn contract for three support vessels for BP Azerbaijan.

5. Strategic divestment of the Technology business for $41mn, strengthening the group’s core oil & gas focus.

Looking AheadThe year 2008 proved that Renaissance Services is on the track of both stellar and sustainable growth. The company is proving its resilience to the global recession and credit crunch, citing its ‘customer-centric’ philosophy as its hook line, and its alignment with blue chip industry clients in key markets for its long term success strategy. Renaissance Services is one of the very few Omani companies that bring in profits from outside Oman as well as from its continued development within the country. Renaissance is built on values of integrity and transparency that is manifest in its distinct corporate personality.

True blue mNCRenaissance Services results reflects the group’s strengths and resilience

The numbers speak for themselves – Renaissance Services has revenues in excess of $0.6bn, employs over 10,000 people, operates in over 16 countries and has shown an outstanding growth record in all economic cycles. It owns and operates a combined Offshore Support Vessel (OSV) fleet of 96 vessels – one of the largest in the world.

Stephen Thomas CEO, Renaissance Services

“2008 has been a year of exceptional achievement for Renaissance, as

the group responded to the powerful global forces shaping the world

economy and took decisive action to secure and sustain our growth path

through turbulent economic times in the years ahead. Our company has

achieved record financial results for the seventh successive year and a

fourth consecutive year of improved safety performance.”

reNAISSANCe SerVICeS

6

Numbers at glance

OER TOP 20 RANK

Growth - 17.72%

Growth - 51.06%

2007 - 6 2008 - 6

50

45

40

35

30

25

20

15

10

5

0

250

225

200

175

150

125

100

75

50

25

0

RO199RO234.26

RO17

RO26.19

2007

2007

2008

2008

Exceeding customer expectations safely and profitably

Revenue (in million)

Profit (in million)


EPS

GR

OW

TH Rank Company In %

1 Oman Flour Mills Company 91.76




5 Shell Oman Marketing Company 13.02

6 Oman Oil Marketing Company 11.36

7 Oman Telecommunications Co. 6.04


9 Bank Dhofar 2.33

10 Bank Muscat (3.33)

11 Al Hassan Engineering Company (3.57)

12 Al Maha Petroleum (6.58)

13 Raysut Cement Company (9.93)

14 Galfar Engineering and Contracting (10.68)

15 National Bank of Oman (14.29)

16 Areej Vegetable Oils & Derivatives (16.95)

17 Al Jazeera Steel Products Company (39.13)

18 OMINVEST (52.08)

19 Oman Cables Industry (59.76)

20 Oman Cement Company (95.86)

ASS

ET S

IZE

Rank Company In RO Mn

1 Bank Muscat 6028.23

2 National Bank of Oman 1984.48

3 Bank Dhofar 1323.82


5 OMINVEST 784.33



8 Galfar Engineering and Contracting 371.14

9 Oman Cables Industry 137.52

10 Oman Cement Company 132.98

11 Raysut Cement Company 117.64


13 Al Jazeera Steel Products Company 80.08



16 Al Maha Petroleum 46.62

17 Al Hassan Engineering Company 45.05



20 Areej Vegetable Oils & Derivatives 30.82

DIV

IDEN

D Y

IELD Rank Company In %














14 Bank Dhofar 4.07



17 Bank Muscat 2.51


19 OMINVEST 2.04


BREAKING IT DOWNA ranking of companies on individual parameters throws up a different perspective highlighting the individual strengths of various companies

*All figures are for 2008 except where it is specified.

COVER StORy


PRO

FITS

AS

A %

OF

REV

ENU

E

Rank Company In %


2 OMINVEST 37.45



5 Bank Dhofar 29.40


7 Bank Muscat 27.72














PRO

FITS

AS

A %

OF

EQU

ITY

Rank Company In %





5 OMINVEST 28.09
















PRO

FITS

AS

A %

OF

ASS

ETS

Rank Company In %
















16 OMINVEST 2.60



19 Bank Dhofar 1.79

20 Bank Muscat 1.55

PRO

FITS Rank Company In RO Mn


2 Bank Muscat 93.73





7 Bank Dhofar 23.68


9 OMINVEST 20.37












COVER StORy


SHA

REH

OLD

ERS

EQU

ITY

Rank Company In RO Mn










10 OMINVEST 72.53











SHA

RE

PRIC

E G

RO

WTH Rank Company In %




4 Oman Telecommunications Co. (8.56)

5 Al Maha Petroleum (9.09)

6 OMINVEST (57.55)

7 Al Jazeera Steel Products Company (63.64)


9 Bank Dhofar (82.11)

10 Oman International Bank (84.14)

11 National Bank of Oman (105.67)

12 Renaissance Services (110.97)

13 Bank Muscat (132.25)

14 Oman Cables Industry (197.88)

15 Al Anwar Holdings (209.93)

16 Galfar Engineering and Contracting (214.90)

17 Oman Holdings International (310.00)

18 Areej Vegetable Oils & Derivatives (350.00)

19 Oman Flour Mills Company (1119.51)


PRO

FIT

GR

OW

TH Rank Company In %








8 Bank Muscat 11.24






14 Bank Dhofar 3.93


16 Al Hassan Engineering Company (4.58)


18 OMINVEST (24.24)


20 Oman Cables Industry *S (59.48)

MA

RK

ET C

AP

AS

ON

APR

IL 2

, 200

9Rank Company In RO Mn

1 Oman Telecommunications Co. 881

2 Bank Muscat 629


4 Bank Dhofar 269


6 Raysut Cement Company 205

7 Shell Oman Marketing Company 175

8 Galfar Engineering and Contracting 116

9 Renaissance Services 108

10 Oman Oil Marketing Company 76

11 Oman Cables Industry 66

12 Al Maha Petroleum 62

13 OMINVEST 49

14 Al Jazeera Steel Products Company 27

15 Al Anwar Holdings 15

16 Al Hassan Engineering Company 14

17 Oman Cement Company 12

18 Oman Holdings International 9

19 Oman Flour Mills Company 5

20 Areej Vegetable Oils & Derivatives 3

COVER StORy

2009 oer's top 20

Documents

consecutive year

price of oil

oman telecommunications

oman cables

oman crude

oman international bank

national bank of oman

banking oman economic