NEWS AND INSIGHTS

  • 13 Aug 2015

    Waha Capital reports a net profit of AED 349 million in H1 2015

    ABU DHABI, 13 August 2015: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), has reported a net profit of AED 349 million for the first half of 2015. Results were driven by the performance of key portfolio assets AerCap Holdings and Dunia Group, along with the company’s Capital Markets division.

    Waha Capital’s first half net profit of AED 349 million was 224 percent higher than an adjusted net profit of AED 107.8 million achieved in the first half of 2014 after taking out net non-recurring adjustments, primarily due to the one-off gain that the company recorded that year after unlocking part of the value from its stake in AerCap Holdings. The first half net profit also represents a 182 percent increase compared to the net profit of AED 123.7 million that was recorded in the first half of 2013. Waha Capital recorded a profit of AED 166.9 million in the second quarter of 2015.

    Commenting on the results announced following an Audit Committee meeting in Abu Dhabi, His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital said: “Our strategy to invest in some of the fastest growing sectors of the economy is reaping its benefits. Waha Capital continues to strengthen its position as a leading investment company with a well-diversified, strong-performing portfolio of regional and global investments. We are focused on creating value for our shareholders and are confident about the company’s outlook going forward.”

    Salem Rashid Al Noaimi, CEO and Managing Director of Waha Capital added: “Our financial results for the first half of the year clearly show our successful growth trajectory on a normalised basis. We have focused on growing and diversifying our assets across different sectors with high growth potential and are in the process of finalising our capital market product offering to third-party investors later this year; this will help us further expand our revenue mix. At the same time, we are studying new investment opportunities in energy, infrastructure, healthcare and education both locally and regionally, which will add to the quality of our portfolio.”

    During the first six months of 2015, Waha Capital, which manages direct Principal Investments as well as global securities portfolios, continued to benefit from an increase in earnings per share at AerCap Holdings. AerCap reported a first-half net profit of $621 million, a 249 percent increase from a year earlier, with earnings per share rising from $1.28 to $2.95 per share – an increase of 130 percent, following the company’s acquisition of International Lease Finance Corporation in May 2014. AerCap executed sale and part-out transactions for 38 aircraft (20 in the first quarter and 18 in the second quarter) and recorded a gain on disposal of $88.3 million, compared to $8.9 million in the corresponding period in 2014.

    Waha Capital’s stake in the company increased to 13.6 percent, from 12.6 percent at the end of 2014. This followed a decision by AerCap Holdings to buy back $750 million worth of shares from AIG in June, which had an accretive effect for other shareholders like Waha Capital.

    On its part, Dunia Finance recorded net income of AED 119.6 million for the first six months of 2015, a 44.7 per cent year-on-year rise, as low interest rates continue to bolster consumer demand. The company also expanded its loan book with a customer base of 187 thousand and achieved 49.3% growth in its loan portfolio versus 30 June 2014. Furthermore, customer deposits witnessed strong growth as that figure increased by 65.7% from AED 620.9 million as at 30 June 2014 to AED 1 billion as at 30 June 2015.

    The Capital Markets Division of Waha Capital generated income of AED 138.6 million in the first half, and launched equities and fixed income funds that will be offered to third-party investors later this year. Both funds delivered strong performance in the first half of the year with The Waha MENA Equity Fund generating a return of 12.1 percent and The Waha CEEMEA Fixed Income Fund generating a return of 8.5 percent.

  • 26 May 2015

    Private investment raising UAE healthcare quality, but staffing remains a challenge – according to EIU report commissioned by Waha Capital

    Abu Dhabi, 26 May 2015: Private investment is helping drive the United Arab Emirates towards its goal of implementing international best-practice in healthcare by 2021, but the sector needs to work harder to attract and retain skilled staff, according to an Economist Intelligence Unit report commissioned by Abu Dhabi-based investment company Waha Capital.

    In the report, called “Investing in quality”, senior executives in healthcare policy making, operational management and insurance provision in the UAE said growing private sector involvement and greater international accreditation are helping to lift quality standards markedly.

    This should persuade more people to seek healthcare services in the UAE, rather than traveling abroad, which can result in much higher expenses for families – often a cost borne by government budgets. A Gallup survey in 2012 showed that two in five Emiratis had a preference for treatment abroad.

    “The UAE authorities have rightly pinpointed healthcare as a priority area for private investment, and the policy is clearly working to raise standards. It is very encouraging that global accreditation bodies such as the Joint Commission International are now highly active in the country,” said Salem Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital. “The nature of competition means that credibility and reputation are key, especially in highly sensitive areas such as personal health.”

    He added: “As international best practice becomes common practice in the UAE, there will be no need to look overseas for care. This will not only alleviate pressure on government budgets, it will also enable patients to receive medical care and recuperate on their home turf amongst their families.”

    Waha Capital is investing in the healthcare sector through its wholly owned subsidiary, Anglo-Arabian Healthcare Group, one of the fastest growing healthcare companies in the country in terms of assets.

    While praising the improved climate for private investment in healthcare, the executives interviewed for the report pointed out two major challenges for the sector: human resources and varying regulations across the nation’s seven emirates.

    The growth of private healthcare provision has increased the number of doctors and nurses in the country – with those in the private sector jumping by over 40 percent in 2012 alone, when seven new hospitals opened.

    But with the number of healthcare workers needing to rise by 50 percent over the next six years to meet government targets, staff turnover remains high, the report found. This is partly because many developing country practitioners use the UAE as a path to a career in Western Europe and North America.

    The report found that private healthcare companies looking to expand across the UAE also find regulatory differences between emirates a challenge, particularly when it comes to licensing healthcare practitioners.

    “The UAE provides an excellent environment for private healthcare providers, and experienced management teams have the opportunity to build scale and raise operating and clinical standards,” said Mark Adams, Chief Executive Officer of Anglo Arabian Healthcare Group. “It’s clear that staffing is an issue for the sector, and it is up to operators to provide the right incentives to attract and retain skilled employees. However, I see this as a virtual cycle. As quality of healthcare provision rises, the UAE will be recognised by doctors and nurses as one of the most desirable places to work in the world, not a stepping stone.”

  • 24 May 2015

    Waha Capital wins “Cross border deal financing of the year” from The M&A Advisor for its hedging and financing transaction

    Abu Dhabi, May 24, 2015: Waha Capital, a leading Abu Dhabi-based investment company, has won the “Cross border deal financing of the year” award from US-based The M&A Advisor for its sale of Aercap Holdings NV shares. This announcement follows another award that the company received from Banker ME for the same transaction.

    Waha Capital carried out a hedging and financing transaction in two phases in 2014 on its stake in the world’s largest aircraft leasing firm, AerCap Holdings NV. The company effectively locked in the value of its AerCap stake by limiting downside equity market risk while preserving significant upside potential, and raised $1.1 billion (approximately AED 4 billion) in financing to be deployed in further investments and repayment of debt.

    The award, presented to Waha Capital at The M&A Advisors’ 2015 Awards Gala in New York, was held in conjunction with the 2015 International Financial Forum and featured over 300 of the world’s leading cross border M&A professionals. Since 1998, The M&A Advisor, headquartered in New York, and with offices in London, has been presenting, recognizing the achievement of and facilitating connections between the world’s leading mergers and acquisitions, financing and turnaround professionals.

    Commenting on the award and transaction, Salem Rashid Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital said: “We are delighted to have received the Cross-border deal financing of the year award and honoured to have been the only company in the UAE to have received this recognition. The hedging and financing transaction not only reduced risk in our portfolio by locking in the value of our stake in AerCap, it also generated significant funding, providing us with a robust platform and capital for future growth. This transaction marked a milestone year for Waha Capital, helping us generate the highest earnings in our company’s history. I am especially pleased that the efforts of our talented investment team have been recognized by a prestigious and reputable organization such as The M&A Advisor.”

    Waha Capital manages a portfolio of direct investments across a number of sectors, including aircraft leasing, financial services, healthcare, energy, infrastructure and industrial real estate.

    The company looks to take majority stakes, when possible, in businesses operating in high potential sectors, occasionally in collaboration with co-investment partners.

Share Price

9/3/2015 2:00:00 PM
Last
2.30 AED
Change
 0.10  (4.55%)
High/Low
2.30/2.23
Volume
877,295

VIDEOS

Waha Capital CEO & MD Salem Al Noaimi Interview with Prospect Group

 

  • Waha Capital CEO & MD Salem Al Noaimi announces New Healthcare Investment

    “Waha Capital today announced a new investment in the healthcare sector through its acquisition of Anglo Arabian Healthcare (AAH), a healthcare group with investments focused on the Northern Emirates and Abu Dhabi. One of the objectives of this investment is to diversify Waha Capital’s sources of income, in line with our business strategy which we formulated 4-5 years ago. We have thankfully succeeded in implementing this strategy, and this investment complements it.

    Entering the Healthcare sector is very important to Waha Capital as it holds high growth potential and is a government priority for the UAE. We will look to increase our investments within this sector in the next three to five years, and plan to make this sector a greater contributor to Waha Capital’s revenues.”