ABU DHABI, 1 February 2016: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), has reported a 2015 preliminary net profit of AED 588 million. Earnings were driven by key investments in the aircraft leasing and consumer finance sectors, as well as a strong performance from the company’s capital markets portfolios.
Net profit for 2015 was 18 percent higher than the adjusted net profit of AED 498.1 million achieved a year earlier, after taking out net non-recurring items, primarily the one-off gain that the company recorded in 2014 on the company’s stake in AerCap Holdings. Reported net profit in 2014, prior to adjustment, was AED 1,732.7 billion.
Earnings per share were reported at AED 0.31 for 2015, compared to the adjusted figure of AED 0.26 achieved during the corresponding period in 2014, which represents an increase of 19 percent.
The company’s fourth-quarter net profit totalled AED 121 million, down 15 percent from the net profit of AED 142.1 million in the same period in 2014.
The preliminary results, which represented a return on average equity in 2015 of 14.3 percent, were announced following a Board meeting in Abu Dhabi chaired by His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital.
Commenting on the results, His Excellency Al Nowais said: “2015 was another strong year for Waha Capital, with the portfolio of investments delivering an impressive performance, particularly given the tough global macro-economic and capital market environments. Our direct investments, especially those in the UAE, continued to register strong growth, while the capital markets portfolios both gave impressive returns amid volatile conditions. Waha Capital’s commitment to asset diversification, including in defensive sectors such as healthcare, and our strategy to increase the proportion of liquid assets on our balance sheet, should help the company continue to deliver above-market returns in the coming years.”
Salem Rashid Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital added: “The strong growth delivered by Waha Capital over the last three years has enhanced shareholder value and placed the company in a robust financial position. In order to maximise return on equity in the coming years, we have launched a nimble, fee-generating investment management business, where we will offer access to our expertise and investment opportunities to third party investors. Our strong business networks and experience of investing through multiple business cycles gives Waha Capital an edge as we look to deploy additional capital in high-potential sectors.”
Waha Capital’s Principal Investments and Capital Markets divisions both performed well. On the Principal Investments side, Anglo Arabian Healthcare (AAH) Group expanded its footprint further in 2015 by making further acquisitions in specialty healthcare services, acquiring majority stakes in Health Bay Polyclinic and in Oras Medical Centre LLC. Dunia Finance, a UAE-based consumer finance company in which Waha Capital owns a 25 percent stake, continued on its strong growth trajectory, and has delivered an average 34 percent return on equity over the last three years.
New York-listed AerCap Holdings, in which Waha Capital currently owns a 15.6 percent stake, purchased 46 new aircraft, signed lease agreements for 276 aircraft, and executed sale and part-out transactions for 83 aircraft in 2015. During the year, the company signed financing transactions for US$7.3 billion.
National Petroleum Services (NPS), in which Waha Capital holds a 20.2 percent stake, witnessed a solid performance in 2015 despite the downturn in global energy markets. During the year the company secured contracts worth AED 150.6 million, taking total contracts-in-progress to AED 1,212.5 billion, as at 31 December 2015.
On its part, the Capital Markets division once again delivered a strong performance, despite a difficult backdrop for emerging markets. Waha Capital’s MENA equity portfolio delivered a total return of 10.8 percent, far outperforming the negative 17.4 percent given by the S&P GCC Index. Waha Capital’s CEEMEA fixed income portfolio produced a total return of 9.8 percent.