Bahrain: Esterad’s net profit jumps 156% to $14.6mln for 2023

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Esterad Investment Company announced financial results for the year ending December 31, 2023 in its board of directors meeting yesterday.

As for the fourth quarter results, Esterad reported a net profit attributable to the shareholders of BD3,576,993 compared to BD1,233,103 for the fourth quarter of last year, an increase of 190 per cent.

Earnings per share during the fourth quarter amounted to 24.41 fils, compared to 8.82 fils in the same quarter last year.

The increase in profits recorded in this quarter is attributed to the increase in the real estate and private equity portfolio returns. The total comprehensive income attributable to the shareholders amounted to BD3,688,549 in the fourth quarter of 2023, compared to BD1,644,980 in the fourth quarter of 2022, an increase of 124pc.

Esterad achieved a total income of BD 4,909,247 during current quarter, compared to BD1,780,090 in the last quarter of last year, an increase of 176pc.

Esterad achieved a net profit for 2023 full year attributable to the shareholders of BD5,524,450, compared to BD2,161,278 last year, which indicates an increase of 156pc.

The basic earnings per share reached 37.70 fils, compared to 15.50 fils last year. The total comprehensive income for the period attributable to the shareholders for the year 2023 amounted to BD4,697,669, compared to BD2,097,956 for the previous year, an increase of 124pc.

Total income for the year amounted to BD7,977,110 compared to BD3,696,786 for the same period last year, an increase of 116pc. This increase in net profit and total comprehensive income is primarily attributed to the increase in revenues from the company’s real estate and private equity portfolios.

The total equity of the parent company’s shareholders as at the end of December 2023 amounted to BD40,198,706, compared to BD35,501,813 as of December 2022, indicating an increase of 13pc.

The total assets at the end of December 2023 amounted to BD119,858,511 compared to BD53,601,286 as in December 2022, an increase of 124pc.

Commenting on the financial results, board of directors chairman Hisham Al Rayes said: “During the year 2023, the company was able to achieve record and remarkable growth, which was reflected in various business sector performance indicators as a result of commitment to the transformation and change strategy adopted by the company. The record growth in net income is a reflection of Esterad’s solid and unique transformative strategy and clear vision towards the path of sustained growth which we are committed to achieve.”

He concluded by saying, “As a result of the company’s success, stability and strength of earnings, the board of directors recommended the distribution of cash dividends of 15pc of the capital, equivalent to 15 fils per equity share, and bonus shares of 5pc, equivalent to five shares for every 100 shares owned for the fiscal year 2023 for the shareholders registered with the company on the record date. However, this recommendation is subject to the approvals of the regulatory authorities and shareholders at the annual general meeting’’.

Chief executive Ahmed Abdulrahman said that the remarkable progress attained in 2023, despite the obstacles faced, can be attributed to the company’s new strategy. The company experienced a significant 156pc increase in net profit compared to the previous year, resulting in a rise in the book value per share from 255 fils in 2022 to 274 fils in 2023. This increase further solidifies Esterad’s strong financial standing, showcasing our continued growth trajectory. We are enthusiastic about sustaining this momentum in the years ahead.”

He added: “It has been a year full of achievements, as we expanded our presence by acquiring Blue Sky Company for BD51 million. This strategic acquisition includes numerous investments in Bahrain and abroad, which will positively contribute to our financial position and increase returns in the current and subsequent years.”

In continuation of its growth strategy, Esterad has launched the new corporate identity of Esterad Bank, which will contribute to enhancing the company’s profits, developing assets under management, expanding the investor base, and diversifying the company’s geographical presence.

One notable achievement in 2023 was the successful completion of the first phase of flagship beachfront project, Amwaj Beachfront. This development has received great interest and positive feedback from the market, and we are proud of our contribution to the growth and improvement of the attractiveness of the local real estate market. The company is also close to signing with one of the leading luxury hotel brands to manage one of the towers in the same project.

“Looking forward to the year 2024, Esterad is in growth mode, focused on momentum, evolution and scalability expanding the boundaries of its niche. The entire Esterad team and talent remains resolute in our commitment to our mission of service, quality, and excellence,” Mr Abdulrahman said.