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Dubai Investments profit slumps 75% as asset values take a hit
Tuesday, Jan 31, 2012
Gulf News
Dubai Dubai Investments yesterday said its full-year 2011 net profit slumped 75 per cent approximately to Dh202.5 million over the previous year (profit of Dh805 million) as some of the conglomerate’s assets lost value.
“The profit for the year 2011 is lower mainly due to lesser fair valuation gain on investment properties and loss on fair valuation of investments,” the company said in a statement posted on the Dubai bourse website.
The company’s revenue for the full year fell to Dh2.48 billion from Dh3.45 billion in 2010, while total assets stood at Dh13.8 billion in 2011 against Dh14.1 billion in the previous year.
With interests in several sectors such as property, telecommunications, manufacturing and financial services, Dubai Investments — just like many other business houses — suffered the brunt of geo-political unrest in Libya and Syria last year.
The company’s managing director and chief executive officer, Khalid Bin Kalban, had reportedly said last October that the company plans to revive some plans in those countries impacted by political changes, in the post-Arab Spring period.
Kalban reportedly said at the time that 2011 was proving to be a difficult year for the company with many of its property portfolios facing revaluations and financial investments taking a big hit, resulting in reduced profits.
The company was also forced to take larger provisions last year as a result of non-payment by clients. “We have to take provisions for clients in Libya and Syria who have not paid due to the unrest,” Kalban had reportedly said.
Also last October, Dubai Investments raised Dh700 million from banks to fund the expansion of Emirates Float Glass .
Expansion
It also stated its intentions to expand its manufacturing companies across some of the priority markets outside the Gulf and wider Middle East and North Africa region, such as India.
With over 20,800 shareholders, 47 subsidiary companies and paid-up capital of Dh3.5 billion, Dubai Investments is the largest investment company listed on the Dubai Financial Market.
The company’s shares closed down 1.5 per cent at Dh0.64 yesterday.
By Shweta Jain?Senior Reporter
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