Oasis Leasing reports record net profit of Dhs171m in 2007

Oasis International Leasing PJSC reported net after-tax annual profit of Dhs171m for 2007.

This is the highest net profit since the company's inception in 1997, and marks a 78 per cent growth over Dhs96m net profit earned in 2006.

Oasis Chairman HE Hussain Al Nowais presided over the Board meeting in Abu Dhabi.

The Company's 2007 financial report submitted to ADSM last evening said that Oasis Leasing achieved Dhs465m in revenues, 51 percent growth over 2006 revenues of Dhs307m. Operating profits also increased, reaching Dhs132m, compared to Dhs67m in the previous year. Assets increased to Dhs4.35billion, posting 27 percent growth during the year from Dhs3.437billion at the end of 2006.

'2007 has been an extraordinary year for Oasis International Leasing. It will be remembered by all of Oasis' stakeholders - particularly our shareholders - as a historic milestone in the reinvention of the company. This is mainly because during 2007, even as the company continued to grow its profitable leasing operations, it simultaneously began charting a new path based on a new vision to achieve business growth, diversification and more shareholder value,' Al Nowais said.

'Oasis will continue the restructuring process by making use of all available opportunities, especially in Abu Dhabi, which is witnessing sharp growth in all business sectors. We will continue our focus on aviation leasing, but at the same time expand our portfolio in three other newly chosen business sectors, namely land development, maritime and financial services, which will help boost shareholder value,' he added.

During the meeting, Al Nowais noted that Oasis Leasing had taken five major new initiatives during the past year in line with its new vision to achieve a more diversified and growth oriented company.

In December 2007, Oasis finalised an agreement with Bahrain-based merchant bank, Addax, acquiring a 42.5 percent stake through an increase of the bank's capital. This investment will power the financial services initiatives that Oasis wants to put in place.

In November, Oasis signed a joint venture agreement with Blenheim Capital, a joint venture between Summit Overseas Development Ltd and Barclays Capital, to establish Waha Financial Services (WFS). WFS will have an initial capital of $13.6m (Dhs50m), with Oasis investing 60 percent and Blenheim investing 40 percent. WFS will specialize in structured finance and risk management solutions. WFS will also enter into local arrangements with entities within the United Arab Emirates and the Middle East and North Africa (MENA) region for which offset and/or countertrade funding is to be sourced or arranged. It will initially focus on meeting the market demand for these specialised services in the UAE and MENA.

In the fourth quarter of 2007, Oasis, with its partners, announced the closure of the first Middle East and North Africa Infrastructure Investment Fund, which has seen $300m subscription. Oasis is one of the main partners of the Fund in cooperation with Dubai International Capital, the international investment arm of Dubai Holding, and HSBC.

Al Nowais also announced the establishment of Waha Land as a new subsidiary of Oasis Leasing, which will specialize in property development in Abu Dhabi in partnership with other real estate developers. The company will start operations once it receives the necessary regulatory approvals.

'However, a dedicated team representing Waha Land has already initiated contacts with leading local and international consultants and real estate companies to explore business development possibilities. The Abu Dhabi Government has allocated a 6 square kilometre block of land for Oasis to start the new business. The land is located in Al Maqtara on Tareef-Abu Dhabi road. Projects developed in this area will cater to industrial cities, logistics and commercial services,' Al Nowais said.

In December, Oasis Leasing signed an agreement with eight banks to obtain a fully unsecured US$500 m corporate revolving facility with a three-year tenor to finance the company's growth and diversification plans. 'I am extremely pleased to report that renowned and leading local, regional and international banks have endorsed our vision for growth and diversification by providing us with this facility,' Al Nowais said.

Al Nowais also stated that Oasis' Board Members have taken the responsibility to enhance the company's stature in various business sectors. 'I am confident that with your support and the commitment of our staff, we will continue on this journey of implementing our new vision with renewed vigour and confidence,' he concluded.

Salem Rashid Al Noaimi, Acting CEO of Oasis, said 'The excellent financial performance of the company in the fourth quarter of 2007 has bolstered the company's readiness to go ahead with the investment plans in all sectors. Our net profit during the last quarter of the year reached Dhs80m, a 73 percent growth over the Dhs46m earned during the corresponding period in 2006. Operating profits registered a growth of 50 percent from Dhs34m in the fourth quarter of 2006 to Dhs51m in the final quarter of 2007.

Oasis has informed the Abu Dhabi Securities Market (ADSM) that the next Annual General Meeting will be held on Monday, 25th February to discuss the 2007 financial results, distribution of dividends and the appointment of financial auditors.