Waha Capital's Q1 net profits down 3.5%

Abu Dhabi-based investment firm Waha Capital today reported a net profit of Dh175.8 million for the first quarter of 2016, a decline of 3.5 per cent over the same quarter of last year.

In a media statement, the firm said that portfolio companies AerCap and Dunia Finance performed steadily and consistently, and Waha Capital’s asset management division saw a strong rise in income, as its funds continued to deliver attractive returns.

Waha Capital reported a 17.6 per cent year-on-year rise in total income to Dh333 million in the first three months of the year while it produced a return on average equity of 4.5 per cent in the first quarter, in line with a year earlier.

As of March 31, 2016, the company’s assets totalled Dh11.4 billion, an increase of 18.9 per cent from the end of 2015.

The company made significant investments during the quarter, acquiring 3.88 million additional shares in New York Listed AerCap Holdings for Dh519.2m and committing Dh147.1m in the newly launched Waha Value Fund, which invests in Mena-listed equities.

The company also received Dh81.9m in distributions from Mena Infrastructure Fund, following the fund’s divestment of two of its assets.

“Waha Capital has recorded significant revenue growth in the first quarter, with important contributions from across the business, and we are therefore confident of delivering attractive returns to our investors in the coming quarters,” said Hussain Jasim Al Nowais, Chairman of Waha Capital,

“Our increasingly diversified business has allowed the company to deliver a strong performance against difficult global market conditions. The company continues to focus on the creation of shareholder value, and is delivering a return on equity that is among the highest in the region now. Furthermore, Waha Capital’s strong balance sheet means we are in an excellent position to capitalise on attractive new investment opportunities,” he said.

“The performance of our capital markets funds has been outstanding in the last quarter and over the last four years, and we are now offering third-party investors access to our investment team’s expertise,” said Salem Rashid Al Noaimi, CEO and Managing Director of Waha Capital.

Within the asset management division, income from capital markets investments increased 31 per cent to Dh98.8m, with the Waha CEMEEA Fixed Income Fund producing a total return of 5.7 per cent in the first quarter, and the Waha Mena Equity Fund giving a total return of 4.3 per cent.

The asset management division’s capital markets investments accounted for 30 per cent of Waha Capital’s total income in the first quarter, while the division’s private equity arm accounted for 24 per cent.

The asset management business is currently offering two capital markets funds, investing in credit in the Central and Eastern Europe, Middle East and Africa (CEEMEA) region, and listed equities in the Middle East and North Africa (Mena) region. Waha Capital also plans to launch a private equity fund, injecting UAE healthcare provider Anglo Arabian Healthcare into the fund as its first investment.   

Waha Capital’s principal investments accounted for 46 per cent of total income in the first quarter. Among its portfolio companies, UAE-based consumer finance firm Dunia Group continued its strong growth, with total assets up 29 per cent in the year to March 31, 2016, and deposits up 43 per cent.

Meanwhile, oilfield services firm National Petroleum Services saw both revenue and net profit increase by 9 per cent, with the company securing contracts worth Dh939.9m in the first quarter, taking current contracts in progress to Dh1.93bn.

Following recent share purchases, Waha Capital now holds a 15.8 per cent stake in Aercap, up from 12.6 per cent a year ago. The world’s largest aircraft leasing firm continued on its trajectory of solid business development, signing lease agreements for 100 aircraft in the first quarter, purchased six aircraft, and executed the sale and part-out transactions for 25 aircraft.

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