Waha Capital records 186 per cent growth in net profits during first quarter 2010

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Waha Capital, the diversified holding company headquartered in Abu Dhabi, and listed on ADX reported an impressive 186 per cent increase in net profits to AED33.4 million during the first quarter of 2010 compared to the net profits for the same period last year.

The company’s financials for the first quarter were presented at the company’s board meeting in Abu Dhabi, which was led by Hussain Al Nowais, Chairman of Waha Capital and attended by members of the board.

Revenues for the first quarter, ended March 31, 2010, were AED112.1 million, an increase of 14.3 per cent over the same period last year. Operating profits recorded a growth of 183.6 per cent to reach AED32.7 million compared to the same period last year.

The assets value stood at AED4.32 billion during the first quarter, a 1.7 per cent growth over the same period in 2009.

Hussain Al Nowais, said that the impressive first quarter results are a testament to the success of the business diversification initiatives undertaken by the company during the past two years. “Our strategic diversification plan has enhanced revenue streams and earned tangible growth in different economic sectors, despite the unprecedented challenges faced by the global economy. We will continue to uphold our diversification strategy, and the revenues will help achieve higher levels of profitability and competitiveness.”

He added: “One of the highlights was closing the deal for financing nine advanced military transport aircraft on behalf of the UAE Armed Forces at a value of AED 6.7 billion (USD 1.8 billion). This is a reiteration of our policy which reflects positively and directly on our company’s revenues and long-term value for our stakeholder.”

Al Nowais explained that the company is on track with its plans to develop Al Markaz, a multiuse real estate project in Abu Dhabi. “In the first quarter of the year, we completed preparatory ground work over 1.5 million sq metres. We are currently working on infrastructure development, and construction of the buildings. We expect to deliver the first phase of residential and industrial units by the end of the year and early 2011.”

He highlighted the importance of the resolution by the Waha Capital Assembly General Meeting to issue mandatory convertible AED 1 billion bonds or Sukuk. He said this will help strengthen the overall financial position and support its expansion plans. “This in turn will have a long-term socio-economic benefit as it enables more UAE nationals to contribute to overall growth of the economy.”

Al Nowais highlighted the progress witnessed by the maritime sector of Waha Capital especially the subsidiaries specialized in oilfield industry support. In the first quarter of the year, the “GMMOS” companies strengthened their presence regionally and internationally, and this sector is expected to contribute significantly to Waha’s revenues.

Waha Capital had recorded the highest profits since it was established in 1997 during 2009 with net profit growing to AED 217 million compared to AED 40 million during the previous year, representing an increase of 442%.  The company’s total operating income also grew 71% over 2008 to AED 846 million. The company’s operating profits increased by 351% compared to the same period in 2008, reaching AED 212 million and operational assets were AED 4.3 billion as of 31 December 2009.