ABU DHABI, 10 November 2016: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), has reported a net profit of AED 388 million for the first nine months of 2016.
The company’s Capital Markets division produced a strong increase in income, with its credit and equities funds continuing to outperform. However, this was offset by lower income from some assets in the Principal Investments division.
Waha Capital’s nine-month net profit was 17 percent lower than the corresponding period of 2015, while third-quarter net profit totalled AED 81.8 million, 30.6 percent lower than a year earlier.
Commenting on the results, His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital said:
“Waha Capital continues to be a highly profitable business, and our move into capital markets has produced strong returns, and diversified our assets and revenue streams. Meanwhile, our Principal Investments team remains focused on creating shareholder value across the portfolio. It is important to highlight that the company delivered a return on average of equity of 9.7 percent in the first nine months of the year which is an impressive figure especially given the current economic environment. We are confident that the company has the expertise, financial strength and the strategy to continue delivering a very solid return on equity, and to take advantage of attractive investment opportunities.”
Salem Rashid Al Noaimi, CEO and Managing Director of Waha Capital added:
“Our financial results this year demonstrate the value of our strategy of asset and revenue diversification, given that some of our direct investments are in cyclical sectors. In recent years, we have added capital markets investments to our asset mix, and these have grown quickly to account for a quarter of Waha Capital’s income. Our funds have an excellent track record of outperformance, and we are making good progress in offering our investment expertise to third-party investors. With a strong balance sheet in place, Waha Capital is focused on delivering steady and sustained growth in the coming years.”
Total income generated by the Capital Markets division increased 33.3 percent to AED 223.4 million in the first nine months of 2016.
The Waha CEMEEA Fixed Income Fund produced a total return of 16.8 percent during the period, the Waha MENA Equity Fund gave a total return of 7.8 percent, and the newly established Waha MENA Value Fund produced a total return of 13.4 percent.
Total income from the Principal Investments division which includes portfolio companies AerCap, Dunia Finance, Waha Land, Stanford Marine Group and National Petroleum Services (NPS) reduced 13.4 percent to AED 417.9 million in the first nine months.
Waha Land, a wholly owned company of Waha Capital, recorded a 14 percent rise in net profit to AED 17.8 million for the first nine months of 2016. The company has a AED 426 million financing package in place for further development of its ALMARKAZ light industrial real estate project, following the successful leasing of existing facilities.
New York-listed aircraft leasing firm AerCap Holdings NV., in which Waha Capital owns a 16.97 percent stake, has reported a steady operating performance this year, but net profit has reduced primarily due to losses from its Aeroturbines business.
Lower contributions were also reported from Dubai-based consumer finance firm Dunia Group and oil and gas services company Stanford Marine Group, which were both affected by challenging operating environments for their businesses.
Total revenue at Anglo Arabian Healthcare (AAH), which is held as a seed asset by the Private Equity division, increased by 24 percent in the first three quarters of 2016, as the company continued to expand. AAH now owns 28 healthcare assets in the UAE, employing 900 people, and serving over 540,000 outpatients.