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Waha profits up 18% on strong revenues

Abu Dhabi - The company's fourth-quarter net profit totalled Dh121 million, down 15 per cent from the net profit of Dh142.1 million in the same period in 2014.

 Abu Dhabi's investment company, Waha Capital has reported a 2015 net profit of Dh588 million, driven by key investments in the aircraft leasing and consumer finance sectors, as well as a strong performance from the company's capital markets portfolios.
Net profit for 2015 was 18 per cent higher than the adjusted net profit of Dh498.1 million achieved a year earlier, after taking out net non-recurring items, primarily the one-off gain that the company recorded in 2014 on the company's stake in AerCap Holdings, the investment company said in a regulatory filing to Abu Dhabi Securities Exchange.
Reported net profit in 2014, prior to adjustment, was Dh1.732 billion, the investment company said.
The company's fourth-quarter net profit totalled Dh121 million, down 15 per cent from the net profit of Dh142.1 million in the same period in 2014.
Hussain Jasim Al Nowais, chairman of Waha Capital, said: "2015 was another strong year for Waha Capital, with the portfolio of investments delivering an impressive performance, particularly given the tough global macro-economic and capital market environments. Our direct investments, especially those in the UAE, continued to register strong growth, while the capital markets portfolios both gave impressive returns amid volatile conditions."
Salem Rashid Al Noaimi, chief executive officer and managing director of WahaCapital, said: "In order to maximise return on equity in the coming years, we have launched a fee-generating investment management business, where we will offer access to our expertise and investment opportunities to third party investors."
He added: "Our strong business networks and experience of investing through multiple business cycles gives Waha Capital an edge as we look to deploy additional capital in high potential sectors."
Waha Capital's principal investments and capital markets divisions both performed well.
Dunia Finance, a UAE-based consumer finance company in which Waha Capital owns a 25 per cent stake, has delivered an average 34 per cent return on equity over the last three years.
New York-listed AerCap Holdings, in which Waha Capital currently owns a 15.6 per cent stake, purchased 46 new aircraft, signed lease agreements for 276 aircraft and executed sale and part-out transactions for 83 aircraft in 2015. During the year, the company signed financing transactions for $7.3 billion.
National Petroleum Services, in which Waha Capital holds a 20.2 per cent stake, witnessed a solid performance in 2015 despite the downturn in global energy markets. The company secured contracts worth Dh150.6 million, taking total contracts-in-progress to Dh1.212 billion, as at December 31, 2015.
The capital markets division delivered a strong performance, despite a difficult backdrop for emerging markets. Waha Capital's Mena equity portfolio delivered a total return of 10.8 per cent, far outperforming the negative 17.4 per cent given by the S&P GCC Index. Waha Capital's CEEMEA fixed income portfolio produced a return of 9.8 per cent.
- haseeb@khaleejtimes.com