Nablus-(BNEWS-The Palestine Exchange has received the preliminary annual financial statements for the year 2024 from 38 listed companies out of a total of 48, excluding listed banks, based on a decision by the Palestinian Capital Market Authority to extend the disclosure period for their preliminary financial statements for 2024 until 15/03/2025. The Board of Directors of the Capital Market Authority made this decision following the issuance of a decree-law regarding the regulation of loan maturities, installments, and financial leasing payments, and its impact on banking procedures, ensuring the quality of disclosure for those financial statements.
Meanwhile, three other companies failed to submit their required financial statements, namely Palestine Electric Company (PEC), whose share has been suspended from trading since the beginning of the aggression on Gaza by decision of the Capital Market Authority, PALAQAR for Real Estate Management, Development, and Operations (PALAQAR), whose last financial statements submitted to the exchange were the preliminary financial statements for the year 2022, and The Arab Paints Company (APC).
According to the preliminary financial data received, net profits for the year 2024 for the disclosing companies amounted to approximately $115 million, representing a 9% increase compared to the previous year, when net profits for the same disclosing companies stood at approximately $106 million.
The 28 profitable companies out of the 38 disclosing companies recorded net profits of approximately $141 million, reflecting a 9% decrease compared to 2023, when the profitable companies—excluding banks—had reported earnings of $156 million. Meanwhile, the remaining 10 companies recorded losses of approximately $27 million, reducing total losses by 47%, compared to last year’s $50 million.
The services sector ranked first among the four disclosing sectors in terms of profits, recording approximately $66 million, marking a 13% decrease. It was followed by the industrial sector, which recorded $31 million in profits, down 5% compared to 2023. The insurance sector also recorded $16 million in profits, with an increase of 50%, placing it third. Meanwhile, the investment sector ranked fourth, achieving $1 million in profits, thereby exiting the loss category it had recorded last year, with a notable increase of 108%.
The five most profitable companies this year were as follows: Palestine Telecommunications $59 million, Wataniya Mobile and the Vegetable Oil Industries Company with similar profits of $12 million, Palestine Industrial Investment $9 million, and Arab Palestinian Investment (APIC) $8 million.
In this context, the Chairman of the Board of Directors of the Palestine Exchange, Mr. Samir Hulileh, commented on these data, stating: "Despite the ongoing aggression for more than 15 months on the Gaza Strip and the West Bank, which has disrupted the economic development wheel in both parts of the homeland, we note, according to the received data, an improvement in the value of companies' profits. This is due to the hedging measures and provisions that these companies had set aside in their 2023 financial data. The companies have demonstrated their vitality and ability to move forward in providing their services and ensuring the continuity of their operations."
He added that there has been a significant decrease in the value of dividends distributed to shareholders in 2024 compared to 2023, which is a natural decline due to the impact of the aggression on the companies’ performance. The total dividends distributed in 2023 for the 2022 financial year amounted to approximately $212 million, whereas the distributions in 2024 for the 2023 financial year decreased to $96 million, representing a 55% decline.
Hulileh emphasized that economic recovery will require a significant amount of time due to the extensive damage to the structure and components of the national economy. Despite the cautious optimism brought about by the ceasefire in the Gaza Strip, and the uncertainty surrounding both the near and distant future, the performance of the Palestine Exchange in the first month of 2025 has painted a better picture for the upcoming period in terms of liquidity and market indicators, which have started to recover gradually.
He also noted that the beginning of 2025 witnessed some important decisions by the boards of directors of companies, such as recommendations for profit distribution and raising funds. Among the most significant decisions were the extraordinary general assembly approval of Palestine Development and Investment Company (PADICO) to issue $120 million in bond loans, and the extraordinary general assembly approval of the Arab Palestinian Investment Company (APIC) to increase its authorized capital by $35 million, raising it to $160 million and offering 30 million shares for secondary public subscription to the company’s shareholders.
Hulileh expressed his expectation that the listing of the new insurance companies will be completed during the first half of this year, especially after they have met the Capital Market Authority’s requirements for listing on the exchange. At the same time, he emphasized that the securities sector is relying on its listed companies to play a leadership role and deliver outstanding performance during this challenging phase to provide better operational results and returns for shareholders, hoping for the swift end of these difficult times.
