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2016 Aug 11

Waha Capital reports net profit of AED 305.9 million in H1 2016

ABU DHABI, 11 August 2016: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), has reported a net profit of AED 305.9 million for the first half of 2016. Earnings were driven by solid performance across the business and, in particular, by key investments in Waha Capital’s Principal Investments division and a robust performance from the company’s capital markets portfolio.

The company’s asset management division experienced a rise in income, as its funds continue to deliver attractive returns, while its principal investment portfolio companies, such as Dunia Group and National Petroleum Services (NPS), also performed well.

One of Waha Capital’s major investments, AerCap Holdings NV, the world’s largest aircraft leasing company, has delivered strong earnings in the first half of the year. Operating performance remained robust, but the company reported a slight decrease in earnings per share (EPS) from a year earlier, mainly due to lower income from aircraft disposals and maintenance reserve adjustments.

 Waha Capital’s half-year net profit was 12.4 percent lower than in the first half of 2015. The company delivered a return on average equity of 7.4 percent for the first six months of 2016.

Commenting on the results, His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital said:

“Waha Capital is a highly profitable company that is becoming increasingly diversified due to the successful launch of our asset management business. Our principal investments also continue to perform well, even against the backdrop of an uncertain global economic environment. The management team is fully focused on delivering above-market returns on equity, while prudently managing risk. Waha Capital’s strong balance sheet gives us confidence that we can take advantage of attractive investment opportunities that will add to shareholder value in the coming years.”

Salem Rashid Al Noaimi, CEO and Managing Director of Waha Capital added:

“Our financial results year to date, particularly from our asset management business, are extremely encouraging for the future growth of Waha Capital. The company is now offering our investment expertise to third-party investors and our funds have continued to outperform their benchmarks, having established an excellent track-record over the last three years. We see this business as central to our future growth strategy. With a strong balance sheet in place, Waha Capital remains well positioned to deliver steady and sustained growth during the years ahead.” 

Net profit from the company’s Capital Markets division increased 4.1 percent year on year to AED 126.8 million in the first half of 2016. The Waha CEMEEA Fixed Income Fund produced a total return of 12.5 percent in the first six months of the year, the Waha MENA Equity Fund gave a total return of 7.7 percent, and the newly established Waha MENA Value Fund produced a total return of 6.4 percent. 

Anglo Arabian Healthcare (AAH), which is held as a seed asset by Waha Capital’s private equity division, recorded consolidated first half revenue of AED 159 million, a 32.5 percent increase from a year earlier.

AAH plans to expand rapidly over the next few years, both organically and through further strategic acquisitions. The company operates more than 26 business assets, employs more than 900 people and serves over 540,000 registered outpatients.

Among Waha Capital’s principal investments, Dunia Group – in which Waha Capital owns a 25 percent stake -- reported a net profit of AED 98.4 million in the first half of the year. The company, which has a customer base of 234,000, reported 12.5 percent year-on-year growth in its loan portfolio in the first half, with net interest income rising 14.1 percent from a year earlier.

National Petroleum Services, an oil field services firm in which Waha Capital owns a 20.7 percent stake, reported a 6.3 percent rise in revenue to AED 379.5 million in the first half of the year. The company secured contracts worth AED 1.2 billion during the period, taking current contracts-in-progress to AED 1.9 billion.

Waha Land, a wholly owned company of Waha Capital, recorded a 6.5 percent rise in net profit to AED 11.4 million for the first half of 2016.  In June, the company announced a AED 426 million financing package and the appointment of Ali & Sons for further development of its ALMARKAZ light industrial real estate project, following the successful leasing of existing facilities.

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