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