Thursday 24 May 2018

Waha Capital Q1 net profit down 50pc

ABU DHABI, May 11, 2017

Waha Capital, a leading investment company based in Abu Dhabi, said its net profit for the first quarter fell nearly 50 per cent to Dh87.6 million ($24 million) from Dh175.8 million ($48 million) for the same period last year.

This was partly due to an adjustment of Dh58.8 million against the share of income from AerCap Holdings NV, following a conservative reassessment of the recoverable amount on the company’s stake in AerCap, said the company in a statement.   

However, Waha Capital’s asset management division, which manages capital markets, and private equity and private debt investments, continued to deliver strong returns and now accounts for just over two thirds of total income, it stated.

Meanwhile, the majority of portfolio companies held by the principal investments division, including AerCap Holdings NV and NPS Holdings gave solid financial and operational performances, it added.  

Waha Capital produced a return on average equity of 2.4 per cent in the first quarter, while total assets increased 4.9 per cent year on year to Dh10.5 billion as at the end of March 2017. During the first quarter, its shareholders approved a 2016 dividend of Dh0.20 per share, representing 90 percent of last year’s net profit.

Announcing the results, Salem Rashid Al Noaimi, the chief executive and managing director, said: "Waha Capital manages a well-balanced portfolio of investments that is delivering a solid performance despite a difficult operating environment for some sectors."

"The majority of our portfolio companies are giving robust operational and financial performances, including AerCap Holdings, NPS Holdings, and Waha Land. Meanwhile, Anglo Arabian Healthcare, held by our private equity division, has become a major healthcare provider in the UAE and has high growth potential," stated Al Noaimi.

"Our asset management business has delivered truly excellent performance from its credit and equity funds, and is now an important revenue stream. We intend to continue to build this business, adding private debt to our asset mix and offering this as a new fund to regional investors," he added.

Waha Capital said it has invested significant seed capital in its funds, which are also currently being marketed to third-party investors. Assets under management totalled Dh1.6 billion as of 31 March 2017, it added.

The Waha Mena Equity Fund produced a total return of 4.9 per cent during the first quarter, building on an 18 percent return during 2016.

According to him, Waha Mena Value Fund, another of its equities, has given a total return of 1.2 per cent in the first quarter. Meanwhile, the Waha Ceemea Fixed Income Fund produced a six per cent total return in the first quarter, having delivered a 20 per cent return in 2016.

Waha Capital is now in the process of launching a new fund – Waha Private Debt Fund – by committing $50 million as a seed investment into this fund, he added.-TradeArabia News Service

Tags: abu dhabi | profit | Waha Capital |

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