Waha Capital reports net profit of Dhs15.9m for first quarter of 2012

Total revenues in the first quarter, including operating income and income from investments in associates, were Dhs76.1m compared to Dhs82.4m in the equivalent period in 2011. Total expenses were Dhs60.5m, compared to Dhs52.7m for the corresponding quarter in 2011. The year on year results were mainly driven by a one-off gain on sale of an investment during the first quarter of 2011.

Portfolio companies continued to perform well in the three-month period ending on March 31, 2012. New York-listed Aercap Holdings N.V., in which Waha Capital owns 21.3%, witnessed an active quarter during which it signed new lease agreements for nine aircraft, delivered six aircraft under contracted lease agreements and purchased five new aircraft. The aircraft leasing company also closed the sale of four aircraft and signed agreements for $311m of debt facilities. Another of Waha Capital's investments, UAE-based consumer finance company Dunia Finance, in which the company owns 25%, recorded a 25% increase in net profit from the previous quarter.

Waha Capital's offshore oil and gas services unit witnessed a pick-up in business and tendering activity, and expects to deploy its vessels fully throughout 2012. Moreover, the company's wholly owned subsidiary Waha Land has neared completion of the first phase of its ALMARKAZ project, a high quality industrial development, located on the outskirts of Abu Dhabi.

Commenting on the first quarter results, Salem Rashid Al Noaimi, Chief Executive Officer of Waha Capital, stated, "Our performance in the first quarter reflects continuing healthy returns from our investments. Though our operating income is broadly level with our position at the same point in 2011, we believe that the more efficient structure of our business now allows us to grow our investment base over the coming years, both in our home market and elsewhere in the region."

He added, "By shifting the focus of the business from an operational model to one which enables us to manage the portfolio of investments in a more efficient way, we have made significant strides towards generating maximum value from our investments. We have carried out a full review of our portfolio and have looked at a range of new strategic options. We have also taken measures to strengthen our balance sheet, which we believe will position us well for sustained growth in the years to come."

The financial results were announced following a Board meeting of Waha Capital in Abu Dhabi, chaired by His Excellency Hussain Jassim Al Nowais, Chairman of Waha Capital, and attended by members of the new Board of the company elected at its Annual General Meeting on 15 April.