Waha Capital posts net profit of Dh267.2m

Waha Capital on Tuesday announced its financial results for the first half of 2020, posting revenues of Dh571 million in Q2 2020, an increase of 8.5 times over Q2 2019's revenue of Dh60 million
Following a significant reorganisation of its senior management during 2019, and against a challenging economic backdrop arising from the ongoing pandemic, the company recorded one of its strongest performances for a quarter in Q2 2020. Notable among the actions taken in this period was the initiation of an investment programme in listed companies in the United States. The programme, amounting to $120 million made in several tranches, will continue into the second half of the year and will comprise minority holdings in healthcare, technology and telecoms companies allowing both management representation and maximum flexibility of tenure.
The company also announced a net profit, attributable to owners of the company, of Dh267.2 million compared to a net loss of Dh124.4 million in Q2 2019. Total impairments during the period were recorded at Dh10 million compared to Dh109.3 million previously in 2019.
Total general and admin expenses in the first half of 2020 were reduced by eight per cent year-on-year to Dh98.3 million. Waha Capital's Asset Management business, which deploys emerging market funds, recorded a net profit of Dh300.1 million in Q2 2020, offsetting a mark-to-market loss in Q1 2020 of Dh297.2 million. By successfully navigating the economic volatility caused by the Covid-19 outbreak, a net overall profit of Dh2.9 million was achieved in the first half.
Waleed Al Mokarrab Al Muhairi, chairman of Waha Capital, said: "While the general economic and social impacts of the Covid-19 pandemic have been significant, we have been able to demonstrate our ability to deliver on our investors' trust and confidence in us with these results. As they show - especially those for the second quarter - we not only strive to grow revenues when times are good, but to protect our investments in times of uncertainty. This is testament to the skills and professionalism of our investment teams. More notably, we are now among the very few companies that is again in investment mode."
business@khaleejtimes.com