ABU DHABI, 2 May 2016: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), has reported a net profit of AED 175.8 million for the first quarter of 2016. Portfolio companies AerCap and Dunia Finance performed steadily and consistently, and Waha Capital’s asset management division saw a strong rise in income, as its funds continued to deliver attractive returns.
Waha Capital reported a 17.6 percent year-on-year rise in total income to AED 333 million in the first three months of the year, while net profit was 3.5 percent lower.
Waha Capital produced a return on average equity of 4.5 percent in the first quarter, in line with a year earlier.
As of March 31, 2016, the company’s assets totaled AED 11.4 billion, an increase of 18.9 percent from the end of 2015.
The company made significant investments during the quarter, acquiring 3.88 million additional shares in New York Listed AerCap Holdings for AED 519.2 million and committing AED 147.1 million in the newly launched Waha Value Fund, which invests in MENA listed equities. The company also received AED 81.9 million in distributions from MENA Infrastructure Fund, following the fund’s divestment of two of its assets.
Commenting on the results, announced following a board meeting in Abu Dhabi, His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital said:
“Waha Capital has recorded significant revenue growth in the first quarter, with important contributions from across the business, and we are therefore confident of delivering attractive returns to our investors in the coming quarters. Our increasingly diversified business has allowed the company to deliver a strong performance against difficult global market conditions. The company continues to focus on the creation of shareholder value, and is delivering a return on equity that is among the highest in the region now. Furthermore, Waha Capital’s strong balance sheet means we are in an excellent position to capitalise on attractive new investment opportunities.”
Salem Rashid Al Noaimi, CEO and Managing Director of Waha Capital added:
“Waha Capital is growing rapidly, and we have made significant investments to establish our asset management business, and to deploy capital in our funds – because we believe in the opportunity, and because we want to align our interests with our investment partners. The performance of our capital markets funds has been outstanding in the last quarter and over the last four years, and we are now offering third-party investors access to our investment team’s expertise.”
Within the asset management division, income from capital markets investments increased 31 percent to AED 98.8 million, with the Waha CEMEEA Fixed Income Fund producing a total return of 5.7 percent in the first quarter, and the Waha MENA Equity Fund giving a total return of 4.3 percent.
The asset management division’s capital markets investments accounted for 30 percent of Waha Capital’s total income in the first quarter, while the division’s private equity arm accounted for 24 percent.
The asset management business is currently offering two capital markets funds, investing in credit in the Central and Eastern Europe, Middle East and Africa (CEEMEA) region, and listed equities in the Middle East and North Africa (MENA) region. Waha Capital also plans to launch a private equity fund, injecting UAE healthcare provider Anglo Arabian Healthcare into the fund as its first investment.
Waha Capital’s principal investments accounted for 46 percent of total income in the first quarter. Among its portfolio companies, UAE-based consumer finance firm Dunia Group continued its strong growth, with total assets up 29 percent in the year to March 31, 2016, and deposits up 43 percent. Meanwhile, oilfield services firm National Petroleum Services saw both revenue and net profit increase by 9 percent, with the company securing contracts worth AED 939.9 million in the first quarter, taking current contracts in progress to AED 1,936.1 million.
Following recent share purchases, Waha Capital now holds a 15.8 percent stake in Aercap, up from 12.6 percent a year ago. The world’s largest aircraft leasing firm continued on its trajectory of solid business development, signing lease agreements for 100 aircraft in the first quarter, purchased six aircraft, and executed the sale and part-out transactions for 25 aircraft.