Abu Dhabi, 1 August 2013 -- Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), recorded a first half net profit of AED 123.7 million, with key investments and its financial services unit performing well.
The rise in net profit was driven by solid performance by Waha Capital's direct investments in New York-listed AerCap, UAE consumer finance company Dunia Finance and the company's advisory business.
Operating income totaled AED 237.9 million, up from AED 113.4 million a year earlier.
The first-half financial results were announced following a Board meeting in Abu Dhabi chaired by His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital, and attended by the members of the Board of Directors and the executive management of the company.
"We have seen a very positive first half of the year, and are very pleased with the performance of our key direct investments," said Al Nowais. "Waha Capital's priority is to increase long-term shareholder value, and we believe our strategy of expansion in high potential sectors through targeted, well-thought-out investments will reward us in the coming years."
Salem Rashid Al Noaimi, CEO and Managing Director of Waha Capital, said: "Our experienced investment team has identified a strong pipeline of investment opportunities, where we believe we can add value and achieve attractive returns. Our strategy is well underway, with the investment in Anglo Arabian Healthcare, and we look forward to further building this ambitious company over the next few years. We are also developing our financial services capability in order to add a further dimension of liquidity and diversification to our asset mix."
The value of Waha Capital's assets stood at AED 4.51 billion as of June 30, 2013, compared to AED 4.43 billion from the end of 2012.
During the second quarter, Waha Capital made its first investment in the healthcare sector by acquiring Anglo Arabian Healthcare (AAH), a new healthcare group established to own and operate hospitals, clinics, pharmacies and diagnostic centres across the United Arab Emirates.
This investment broadens Waha Capital's asset mix, marking its entry into an area that holds high growth potential and is a priority for the UAE.
The healthcare group owns and operates 16 assets, employs over 300 people, including 60 doctors, and serves over 400,000 registered outpatients, with average daily visits of over 1,500 patients. The initial assets include a day-surgery hospital in Sharjah and a new 120-bed hospital in Ajman, which is due to open later this year, as well as six clinics, five pharmacies and three laboratories across Abu Dhabi, Sharjah and Ajman. AAH plans to expand rapidly in the next few years, both organically and through further acquisitions.
Key portfolio companies have seen positive developments this year.
AerCap continues to position itself for long-term growth, particularly in emerging markets, and to make significant enhancements to the quality of its fleet.
During the second quarter, the company completed a major transaction with LATAM Airlines Group, entering into a US$2.6 billion purchase and leaseback agreement for 25 wide body aircraft, with deliveries scheduled over the next four years. The order includes ten A330s which were delivered in Q2 in addition to forward orders of nine A350s and six B787s.
Also during the second quarter, AerCap sold its interest in eight B737s, which were part of a large purchase and leaseback transaction the company had closed with American Airlines in 2011. AerCap will continue to manage these aircraft and retain an ownership position. As of June 30, 2013, AerCap's portfolio consisted of 368 aircraft either owned or managed.
Stanford Marine Group, Waha's investment in the maritime space, has continued to benefit from strong demand for offshore oil & gas support vessels across its core GCC and Southeast Asian markets. Grandweld, the group's shipbuilding arm has also had an active half, having signed a contract to build an aluminum crew boat for Maroos Shipping, another crew boat for LIWA Marine Services and a $50m contract with Kuwait Oil Company for four crane/workboat class vessels.
Dunia Finance expanded its loan book at a healthy rate, with the company gaining some 11,700 new customers during the first half and achieving around 12% growth in its loan portfolio. Revenue in the first half increased by approximately 27% compared to the same period in the previous year, and net income by around 91%.
Waha Capital's industrial real estate development, ALMARKAZ, has seen strong leasing demand following completion of the first phase of construction in 2012. The project continues to receive growing interest from manufacturing and logistics businesses attracted by the development's Grade A industrial facilities.