Q1 profits of top 25 UAE listed firms rise 25%

Net profits of the 25 largest listed companies in the UAE shot up by more than 25 per cent in the first quarter of 2010 compared with the corresponding period of 2009, Emirates Business research reveals.

Combined net profits of the UAE's top 25 companies by market capitalisation (as at May 16, 2010) went up by Dh2.06 billion in this period, from Dh8bn in Q1 2009 to Dh10.06bn in Q1 2010, a spike of 25.78 per cent.

Despite the uninspiring global and regional financial environment coupled with a slow down in local economic activity, which has led to many leading banks and other corporate giants taking unprecedented provisions, the fact that net profits of the UAE's top 25 companies have grown in the first quarter of 2010 is testimony to the fact that the country's economy has already turned a page. Of the top 25 companies, only one – Aldar Properties – made a quarterly loss while net profits of the Abu Dhabi National Energy Company (Taqa) witnessed the steepest rise of 617.5 per cent on the back of higher hydrocarbon revenues.

In fact, the more-than-a-quarter upsurge in the overall net profits of the top 25 firms rests largely on the profits turnaround in Aabar Investments, which saw its Q1 2009 net loss (restated) of Dh1.05bn turn into net profits of Dh1.58bn in Q1 2010 on the back of combined gains of Dh1.81bn from derivatives and foreign exchange transactions, somewhat skewing overall profit numbers.

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