Aabar Q1 profit leaps on derivatives

Abu Dhabi's Aabar Investments posted a leap in net profit in the first quarter to Dh1.58 billion ($430.2 million), mainly due to derivatives income, after revising its year-ago result to a deep loss.

The firm, which has a stake in German automaker Daimler, reported gains in income from financial derivatives of Dh1.2 billion in the quarter, according to the company's earnings statement.

But Aabar revised its first quarter 2009 result sharply lower to a loss of Dh1.045 billion from a previously reported profit of Dh177 million.

Aabar said it had "identified errors in the classification of an investment, arising from the misinterpretation of fundamental facts", resulting in a decrease of Dh1.22 billion in the fair value of investments.

This dragged the company to a loss for the year-ago quarter of Dh1.045 billion, according to the income statement.

A company spokesman was not reachable for comment.

The firm, which has a stake in Virgin Galatic, said it was reviewing further buys as part of its acquisition plans after sealing a deal with U.S. company Xojet Inc to establish an Abu Dhabi-based firm offering aviation services in the Middle East, and a deal with German tunnel boring and drilling firm Herrenknecht AG.

Aabar and Dubai-based Arabtec recently called off a $1.7 billion agreement for Aabar to take over Arabtec.

International Petroleum Investment Corporation, or IPIC, wholly owned by the government of Abu Dhabi, is the majority shareholder in Abu Dhabi-listed Aabar.

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