Dubai Investments’ posts Dh171 million profit in H1

Dubai Investments, the largest investment company listed on the Dubai Financial Market, on Sunday declared a net profit of Dh171 million for the first six months of the year.

The investment company’s profit fell by 28.6 per cent compared to Dh239 million for January to June period last year. The income declined mainly on reduction in contract revenues, which dropped to Dh190 million compared to Dh291 million last year.

The investment firm also reported a 54 per cent decline in its profit for the second quarter compared to same quarter last year. It earned Dh63.4 million in June quarter, compared to Dh138.3 million in the same quarter in 2011.

“The year 2012 has been promising and there has been renewed investment activity in the region which is a sign of economic growth. The tourism sector has been on the upswing for sometime and now the local real estate market is also picking up. All these factors have contributed to the group’s sustained performance,” Dubai Investments managing director and chief executive Khalid bin Kalban said in a statement. The company, which has stakes in more than 40 companies, is planning to explore new opportunities and also looking to withdraw some selected investments to boost profitability.

“Moving forward, we are targeting exits from selected investments which are expected to further contribute to the group’s profitability. We will continue to explore opportunities in strategically promising businesses in existing and new geographical locations to consolidate our position as an important player in the region while providing significant returns in the future” Kalban said.

Total assets of the company as on June 30, 2012 reached Dh13.6 billion while total liabilities amounted to Dh4.6 billion. Net worth of the company stands at Dh9 billion and the annualised return on share capital achieved for the period was 9.6 per cent.

During the six month period ended 30 June 2012, the company acquired assets amounting to Dh136.41 million, compared to Dh82.76 million in same period in 2011. The company’s stocks jumped by nearly two per cent on Sunday before the profit announcement. The scrip price surged 28 per cent in 2012 compared to 16 per cent in 2011.

Established in 1995, Dubai Investments has established companies encompassing a diverse range of sectors including manufacturing, food and related fast moving consumer goods, wholesale and retail trade representation, healthcare and pharmaceuticals, industrial and commercial properties, real estate management and property development, transportation, shipping, distribution and logistics, marketing and sales, publishing and telecommunications.

abdulbasit@khaleejtimes.com