Dubai Holding unit's profit surges six-fold
Dubai, April 1, 2013
Dubai Holding's main unit posted a six-fold increase in net profit for 2012 driven by higher revenues, cost cuts and a significant drop in impairment expenses.
Dubai Holding Commercial Operations Group (DHCOG), part of the Dubai ruler's personal business empire, posted a net profit of Dh1.2 billion ($326.71 million) for 2012, compared with profit of Dh204 million in 2011, it said in a bourse statement on Monday.
Total revenues in 2012 rose by 3.8 percent to Dh9.2 billion from Dh8.8 billion a year earlier, while impairment charges dropped to a mere Dh7 million from Dh2.4 billion in 2011, DHCOG said.
Commenting on DHCOG’s improved performance, Mohammad Abdulla Al Gergawi, chairman of Dubai Holding, said: “Our turnaround strategy has made considerable strides in 2012 and our businesses across the commercial operations group are increasingly well positioned. This, together with the strengthening of Dubai as the region’s financial, business and tourism hub, gives me confidence that we are set for the next phase of future growth.”
Ahmad Bin Byat, chief executive officer of Dubai Holding, said: “Over the last few years, we have focused our strategy on driving revenue, improving operations across all of our businesses and addressing our financial commitments. The results of this strategy are increasingly evident in our numbers and are testament to the group’s overall recovery. We will continue supporting our business lines, all of which continue to progress positively in the strengthening market environment.”
DHCOG’s total assets stood at Dh86.33 billion and the group continues to deleverage, having successfully paid down a $500 million bond in February 2012. DHCOG concluded the year with a healthy cash balance of Dh1.7 billion, the statement said.
Total DHCOG debt currently stands at Dh11.7 billion, a reduction during the course of 2012 of Dh1.1 billion, thereby improving the debt to equity ratio to 0.80. Contractor liabilities of Dh2.1 billion were settled in the year and overall current liabilities decreased by 20 per cent, it said. - Reuters and TradeArabia News Service