Profits of listed UAE firms about Dh42bn
Profits for the year 2009 of UAE national companies listed on the Abu Dhabi and Dubai stock exchanges are expected to be about Dh42 billion, according to Abu Dhabi-based Al Fajr Securities.
"The 2009 profits of UAE national companies listed on the two markets are expected to range between Dh38.6bn and Dh42.7bn. The estimated profits for 2009 will fall by 20 per cent less on average compared to the net profits in 2008, which stood at Dh50bn," Maha Kenz, a financial analyst in the company, said yesterday in a study.
She added that according to estimates by Al Fajr Securities, sectors that saw a rise in profits during the economic boom in the country before the recession, witnessed a fall in 2009. These sectors are real estate finance and real estate, energy, investment and consumer services. However, there are some sectors that weathered the crisis well and achieved growth in profits in 2009. They are banking and insurance, telecommunications, building materials, foodstuff, healthcare and the general industrial sectors.
In the real estate sector, which suffered a big impact of the crisis, revenues from the sales of lands and properties fell. Revenues were also impacted due to the way they were calculated and their conversion into the "completed project method". The revenues of projects under implementation were not included in the profits until the sales and delivery was completed. Global fortunes of certain firms also impacted the overall profits in the sector – for example Emaar losing its investments in the United States.
"These factors have led to expected net profits from the real estate sector of Dh3.5bn in 2009, a fall of 69 per cent compared to the profits of 2008, which were Dh11.5bn," the report said.
The real estate finance sector was impacted the most by the crisis. It suffered consecutive losses over the last four quarters and its total losses in 2009 are expected to revolve around Dh280 million, compared to a profit of Dh0.7bn in 2008.
In addition, a crisis has brewed for shareholders of Amlak and Tamweel as a result of the stoppage of trading on their shares, with no solution yet to the problem.
The performance of the energy sector was also impacted in 2009. Forecasts put the sector's profits at Dh925m, compared to its profit of Dh2.79bn in 2008. The sector's profits fell due to the drop in oil prices.
The investments sector is projected to announce profits of Dh1bn on average in 2009 – a fall of 45 per cent compared to 2008 when the figure was Dh1.9bn.
In the consumer services sector, it is expected that profits will be limited to Dh1.5bn, compared to Dh1.63bn in 2008.
The sectors expected to show growth in profits in 2009 are the foodstuffs sector with a growth rate of 80 per cent, healthcare sector with 42 per cent, the building materials sector with 32 per cent, it said.
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