Waha Capital reports revenues of AED 112.1 million for the first half of 2012
Abu Dhabi, 31 July, 2012 – Waha Capital PJSC (ADX: WAHA), an Abu Dhabi-based investment company, reported today total revenues of AED 112.1 million, compared with AED 147.8 million during the same period in 2011. Despite taking prudent provisioning during this period on legacy assets, the company recorded a net profit of AED 3.5 million for the first half of 2012. This conservative approach, in the midst of challenging market conditions, has placed Waha Capital in a stronger position and further reinforced its already strong balance sheet.
Waha Capital’s balance sheet core investments, such as New York-listed aircraft leasing company AerCap Holdings N.V., oil and gas services firm Stanford Marine Group, as well as the company’s financial advisory business continued to perform well against an uncertain global macroeconomic backdrop.
Total operating expenses in the first six months of 2012 were AED 111.3 million, compared to AED 111.4 million a year earlier. Total assets stood at AED 4.2 billion, unchanged from the end of 2011.
Waha Capital's Board of Directors also agreed today to appoint Chief Executive Officer Salem Al Noaimi to a new role as Managing Director, responsible for leading the company’s strategy, as well as maintaining and building strong relationships with key stakeholders.
His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital said this move would strengthen the company’s leadership as it evolves into an investment management business model in the coming years, developing new investment partnerships.
“The executive management team will continue to work on building a dynamic investment company aimed at creating shareholder value,” Al Nowais said. “We are focused on becoming a sophisticated investor, allowing our teams to eventually step away from the day-to-day operations of our holdings, and to concentrate on pursuing new investment opportunities and extracting maximum returns for our shareholders and partners.”
Key investment portfolio developments in the six months to June 30, 2012:
New York-listed Aercap Holdings witnessed an active first half of 2012, taking delivery of 17 new aircraft, selling 10 aircraft, purchasing 10 new aircraft and signing new lease agreements for 29 more. The company’s fleet as of the end of June stood at 347 aircraft that are either owned, on order or managed. AerCap is on track to purchase almost $1 billion worth of aircraft in 2012. With a view to increasing shareholder value, AerCap announced a $130 million share repurchase programme that will run through to the end of 2012, which is incremental to a $100 million repurchase that was executed in 2011. Waha Capital chose not to participate in the 2012 programme, resulting in an increase in the company's stake in AerCap to 22.2 percent, up from 21.3 percent from the end of 2011. Waha Capital's shareholding may increase further if it decides not to participate in this year’s second repurchase programme.
Looking at one of our investments in the offshore oil and gas services sector, Stanford Marine Group experienced a robust operating performance this year. The company’s offshore supply vessel chartering arm, Stanford Marine, has taken delivery of two vessels, both of which are currently under charter. The company also extended its reach into East Africa, successfully tendering for a new contract in Tanzania. Grandweld, the company’s shipbuilding arm, has established a new ship repair division in Fujairah and obtained a new contract to design, build and deliver two crew boats for Fujairah National Group. Another investment, UAE-based consumer finance company Dunia Finance, continued to experience impressive business growth in the first half of 2012, recording double-digit loan book expansion, supported by growth in its institutional deposit base. The company has also seen an improvement in revenue and asset quality. Finally, Waha Land’s light industrial real estate project, ALMARKAZ, began leasing activity in the first quarter of this year. To date, 10 percent of its 90,000 sqm of space has already been reserved by prospective tenants.