29/04/2026 03:50 AST
Al Mahhar Holding Company, one of the leading services and specialised products providers to the energy and infrastructure sectors in Qatar, has reported net profit of QR15.1mn in the first quarter (Q1) of 2026, a 17.7% increase on an annualised basis.
The improvement was driven by higher contributions from equipment rental and servicing revenue, which carries comparatively higher margins; a reduction in slow moving inventory; enhanced internal efficiencies; and lower finance costs, its spokesman said.
The company's net profit margin improved to 6.3% from 5.4% the prior year period, supported by internal efficiencies and disciplined cost management.
"The improvement in our margins reflects the quality of our team and the growing contribution of our service and rental activities. Qatar's energy sector continues to present meaningful opportunities for the group, and we remain focused on executing our long-term plan with discipline and purpose," said Al Mahhar's chairman, Fahad Alfardan.
Al Mahhar generated QR238.7mn in revenue in Q1-2026, broadly in line with the same period last year, despite logistical challenges affecting the supply of equipment and materials during the quarter.
This was supported by strong growth in service income and equipment rental, which offset a decline in equipment and spare parts sales.
Equipment and spare sales remained the main contributor, accounting for 77.5% of total revenue, down from 82.1% the previous year; followed by service income at 15.3% and equipment rental at 7.2%, both of which increased their share of revenue against the prior year.
The company remains in a strong financial position, with total assets at QR696.1mn at the end of March 31, 2026, up from QR651.9mn as of December 31, 2025.
During Q1-2026, Al Mahhar completed the divestiture of its 49% stake in Al Mahhar Al Kuwaitiyya for Light and Heavy Equipment and Machines, following approval by the extraordinary general assembly on December 17, 2025.
The transaction forms part of the company's internal reorganisation of its Kuwait operations, pursuant to which operating activities have been consolidated under Petrotec Kuwait. The company continues to participate in the Kuwait market through its 49% interest in Petrotec Kuwait.
Gulf Times
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