Sorouh Q1 net profit plunges 42pc
Abu Dhabi, April 28, 2011
Sorouh Real Estate, Abu Dhabi's second largest developer by market value, said on Thursday its first quarter net profit fell 42 per cent, despite higher revenues.
The company reported a first-quarter net profit of Dh76.3 million ($20.78 million), compared with a profit of Dh131.6 million during the same period in 2010.
It did not give a reason for the fall in earnings and said in a statement that all of its Abu Dhabi developments remain on track with the focus being on maintaining delivery schedules.
Two analysts polled by Reuters forecast a profit of Dh54 million and Dh94 million. The revenues for the quarter rose to Dh452 million from Dh430.7 million in the same period last year, Sorouh said.
Sorouh's results follow that of the UAE's biggest developer Emaar Properties which reported 45 per cent drop in quarterly profits, as revenues dipped.
Sorouh's chief financial officer said earlier this month the company expects to complete projects worth Dh13 billion ($3.54 billion) with delivery of some 7,000 units by 2014.
Most Abu Dhabi developers are focusing on completion and delivery of existing projects after suffering big losses during the global financial crisis which put an end to a six-year construction boom.-Reuters
More Construction & Real Estate Stories
- Emaar rules out plans for new tall tower
- Barwa net profit surges 27.3pc
- RAK Properties adds new villas to Flamingo project
- Saudi launches housing scheme to ease shortage
- R&M wins Oman residential project contract
- Asian skyscraper prices tower over rest of the world
- Tamleek opens new office in Dubai
- $29m allocated for Bahrain drainage projects
- Indian group plans $300m Bahrain Bay investment
- Drake and Scull awards key supply contract
- FCC wins $702m Doha metro line contract
- SPF Realty sees Dubai project success
- Abu Dhabi set for big property show
- Aldar working on $1.5bn UAE housing projects
- Gulf Finance House to start $3bn Tunisia project
- Abu Dhabi to see 10pc surge in new homes
- Saudi construction sector booming on new contracts
- Emaar offers 330 apartments in MBR City
- Dubai Design District sees big demand
- HUGE DEAL: Arabtec inks $40bn Egypt housing project
- Galfar ex-CEO gets 15 years' jail over bribes
- $32m BFH car park work underway
- Bahrain awards $5.8m project tenders
- Spinneys to set up distribution centre at Kizad
- Dubai unveils $300m hitech 'green' city project
- Deyaar plans $245m Dubai complex
- IFA unveils $272m Dubai mixed-use project
- CBRE tops Fortune’s most admired firms list
- Kuwait's real estate sales hit $1.1bn in Jan
- Dubai RTA awards $27m roads contract