Waha Capital posts record second quarter earnings

Waha Capital’s industrial real estate development, Almarkaz, continued to receive growing interest from light industrial processing, manufacturing and logistics businesses attracted by the development’s international standard infrastructure and warehouse facilities. — Supplied photo

The record quarterly net profit for the company — the first time quarterly — has exceeded the Dh1 billion mark, was largely due to the unlocking of part of the value in Waha Capital’s stake in AerCap Holdings NV following the New York-listed company’s acquisition of International Lease Finance Corporation, or ILFC, a transaction that closed in May this year.

Waha Capital booked a one-off gain related to the transaction, and recorded a higher earnings contribution from AerCap, because of the increase in scale, valuation and earnings per share at the aircraft leasing company.

Half-year net profit reached Dh1.289 billion, representing a nine-fold year-on-year increase.

Commenting on the results, Hussain Jasim Al Nowais, chairman of Waha Capital, said: “These exceptional results are a testament to Waha Capital’s strong financial position and sound investment process.”

Salem Rashid Al Noaimi, chief executive officer of Waha Capital said: “Our diversified investment strategy is yielding strong results.”

The value of Waha Capital’s assets increased 24 per cent year-on-year to Dh6.5 billion as of the end of the second quarter.

Investments perform well New York-listed AerCap Holdings NV has expanded significantly through the acquisition of ILFC from American International Group, Inc. (AIG), a transaction that closed in May this year. The transaction delivered immediate shareholder value through a large increase in scale and earnings.

Through the transaction, which AerCap partially funded through the issuance of new equity to AIG, Waha Capital’s stake in AerCap was reduced to 14.1 percent from 26.3 percent. As a result of this dilution, the company booked a one-off non-cash gain for deemed disposal on the 12.2 percent stake reduction.

In the second quarter, AerCap signed lease agreements for 36 aircraft, delivered 28 aircraft under contracted lease agreements, purchased 10 new aircraft, and closed the sale of 48 aircraft.

Dunia Finance, a UAE-based consumer finance company in which Waha Capital owns a 25 per cent stake, continued to produce very strong results in the second quarter, with net profits up by 48.5 per cent year on year to Dh82.7 million.

Dunia’s loan book expanded 20.3 per cent in the six months to end of June 2014, with customer deposits growing 20.6 percent in the same timeframe.

The Anglo Arabian Healthcare (AAH) Group performed well, having already broken even in the first quarter, less than a year after its acquisition by Waha Capital. The six clinics operated by the group have increased their volumes of patient visits significantly.

The company’s Grandweld Shipyard has also delivered four ships and completed 174 repair and maintenance jobs.

Waha Capital’s industrial real estate development, Almarkaz, continued to receive growing interest from light industrial processing, manufacturing and logistics businesses attracted by the development’s international standard infrastructure and warehouse facilities. As of the end of the second quarter, 79 per cent of the 90,000 sqm of Small Industrial Units (SIUs) had been leased.

— haseeb@khaleejtimes.com