Parkin Company PJSC, the exclusive operator of public parking spaces in Dubai, is looking at building more multi-level parking to provide alternative to motorists during unstable weather, top company executives said on Thursday.

“We are studying more options to expand our platform – and one of them is multi-storey parking, which represents 2 per cent of our revenues. We have different plots that can accommodate multi-level parking,” Parkin CEO Eng. Mohamed Al Ali and Parkin CFO Khattab Omar Abu Qaoud told Khaleej Times after the release of their Q1 financial report.

Parkin registered an 8 per cent increase in revenues, reaching Dh215.3 million, in the first quarter of the year, following a successful IPO (initial public offering) in March. Net profit was up by 5 per cent to Dh103.7 million on the back of a higher EBITDA (earnings before interest, taxes, depreciation, and amortisation) base.

The Parkin executives said they will be coordinating with Dubai’s Roads and Transport Authority (RTA) and private developers to expand their parking platform. An announcement will be made on this matter, they noted.

Dubai’s transport network was heavily impacted by the record-breaking rainstorm named ‘Hadeer’ that hit the entire UAE last month. Cars were not only stuck on the roads but were also flooded in public and private spaces, particularly in several low-lying areas.

Parkin’s operations and services were also impacted by the unprecedented weather across the country during the week of April 15. The disruption during the period of heavy rains is expected to translate to a Dh4-million impact on revenues for the second quarter.

Parkin executives, however, assured the rainstorms did not affect their assets and the disruption was generally minimal.

“Our assets are intact. Quick-reaction and emergency teams responded swiftly and decisively in assessing and reducing the potential impact of the record rainfall across our operations. We used technology to monitor the situation and there was good preparation before the situation happened,” they noted.

Al Ali underscored studies for the multi-level parking will be mainly conducted by RTA as part of its road infrastructure programme as Parkin is principally a CapEx (capital expenditures) company focused mainly on operations.

Future opportunities

The Parkin executives also hinted at hiring more staff for the company.

“We are confident and excited in future opportunities to grow our business. For sure, there will be recruitment plans to adapt with our needs and fulfill manpower requirements,” the Parkin CEO noted.

“Parkin was carved out from RTA and there was a smooth transition in human resources,” added Al Ali, noting: “Parkin has maintained optimum operation and efficiency as we also increased smart inspection vehicles into our operations.”

Al Ali added Parkin is also looking into expanding its services to privately owned developments and centres, including shopping malls and commercial hubs.

“We are developing our platform and diversifying our revenues. We have more than 30 years of parking operation and we employ seamless technology – these are our main pillars. We will take every opportunity and make a study to maximise revenues,” he added.

The Parkin CEO also said they are planning to pilot an initiative with Dubai Electricity & Water Authority (Dewa) to set up more EV (electric vehicle) charging stations across the emirate.

Park and wash

“Separately, we are setting up a team to develop feasible structure for EV across parking sites in Dubai and boost the transition from petrol to electric vehicles,” added Abu Qaoud, noting: “Any value-added services – for example providing parking with car wash – will be studied as we are aiming to provide premium service to our customers."

The Parkin CFO reiterated they continuously explore diversification and seek out other commercial revenue streams for the company and shareholders.

Parking fees and fines

Parkin executives also assured there will be no introduction of parking fees and fines with the approval of authorities.

“We are regulated by RTA and we cannot implement tariffs or fines without the approval of the RTA and the Dubai Executive Council.

Parkin earlier said: “The Executive Council of Dubai reserves the authority to approve any requested changes in tariffs to ensure that any revisions protect investors; are aligned with Dubai’s social goals; and form a fair framework for customers.”

Meanwhile, Ahmed Bahrozyan, chairman of Parkin’s Board of Directors, commented on company revenues: “First quarter results highlight continued progress in delivering financial performance, driving operational excellence and realising the potential of our growth platform to scale up and diversify. Going forward, I am confident in Parkin’s future opportunities and our pivotal role in enabling mobility to support Dubai’s growth story.”

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