Dubai Investments profit surges 116%
Dubai Investments (DI), the largest investment company listed on the Dubai Financial Market, has announced that its net profit for the first six months of 2013 has surged by 116 per cent compared to the similar period last year.
Announcing its financial results for the six-month period ended June 30, 2013, DI reported net profit of Dh370 million compared to Dh171 million for the first half of 2012. Consolidated total income for the first half of 2013 was higher at Dh1.29 billion, as against Dh1.12 billion for the comparable period last year.
The company also announced that total assets as on June 30, 2013 stood at Dh12.58 billion, while net worth increased to Dh8.6 billion. The annualized return on share capital achieved for the period was 20.7 per cent, compared to 9 per cent for the entire 2012.
The assets and liabilities have been restated following deconsolidation of the joint ventures pursuant to application of change in accounting standards; but there is no impact on either the profitability or net worth of the Group.
Khalid bin Kalban, Managing Director and CEO of Dubai Investments, said: “We are delighted with the excellent results achieved for the first half of 2013. Investor confidence has returned to the UAE and our results are reflective of the upbeat sentiment across various sectors of the economy. With our expertise across diversified businesses, we are in a good position to capitalize on future opportunities.”
He added: “Dubai Investments has strategically focused its efforts on developing high utility products that offer immense growth potential. With the upswing in the economic activity in the UAE and the region, DI is hoping to see continued growth and dominance in its sectors of operation while expanding regionally and into other global markets. We expect the outlook for the rest of the year to be quite positive and we are actively working on certain divestments which are expected to contribute significant returns to the shareholders.”
DI owns around 40 subsidiaries and joint ventures encompassing a diverse range of sectors including manufacturing of construction-related materials, food and related fast moving consumer goods, pharmaceuticals, industrial and commercial properties, real estate management and property development, marketing and sales, information technology solutions, driver education, district cooling and financial investments.
One of the DI subsidiaries, Dubai Investment Park [DIP] was recently assigned a long-term corporate credit rating of ‘BB’ by Standard & Poor’s Rating Services [S&P] with a stable outlook. The $300 million Sukuk planned by DIP is in progress and will be in the market in the coming quarter for public subscription.