|17 February, 2020

Bahrain's Seef Properties income for 2019 surges to $29.68mln

The increase in the net profit is due to cost reduction and savings

Traders look at the screens at Bahrain Bourse in Manama, Bahrain, February 7, 2018. Image for illustrative purposes.

Traders look at the screens at Bahrain Bourse in Manama, Bahrain, February 7, 2018. Image for illustrative purposes.

REUTERS/Hamad I Mohammed

MANAMA: Seef Properties has reported a net profit of BD3.86 million for the fourth quarter ended December 2019, which compared with BD3.77m for the fourth quarter of the previous year, shows an increase of 2.34 per cent.

The increase in the net profit is due to cost reduction and savings, coupled with management of expenses as well as lower provisions when compared with the same period in 2018.

Diluted earnings per share for the fourth quarter of the year 2019 amounted to 8.39 fils compared with 8.20 fils for the same period the previous year.

Total comprehensive income for the fourth quarter increased by 2.34pc to BD3.86m compared with BD3.77m for the same period previous year due to increase in the share of profits from investments in the associate and joint venture companies.

The Company’s operating profit stood at BD3.65m during the fourth quarter of 2019, compared with BD3.82m for the same period in 2018, with a decrease of 4.69pc.

Meanwhile, Seef Properties has reported a net profit attributable to the parent of BD10.93m, in comparison with BD10.91m for the same period of the previous year, achieving an increase of 0.11pc. The increase is attributed to a growth in operating profit of 1.86pc compared with last year.

Diluted earnings per share amounted to 23.75 fils for the year ended 31 December 2019, compared with 23.73 fils for the same period of the previous year.

Total comprehensive income for the year increased by 0.67pc to BD11.19m compared with BD11.12m in 2018.

The increase is due to implementation of new cost saving initiatives which affected efficiency and controlled expenses.

Operating profit for 2019 increased 1.86pc to BD15.13m, in comparison with BD14.85m that the company has reported for the same period of the previous year.

Total equity (after excluding the equity attributable to minority) has increased by 2.46pc to BD154.54m, compared with BD150.83m for the same period of the previous year.

Total assets have increased by 3.54pc to BD174.32m when compared with BD168.37m in the previous year.

The board of directors has recommended cash dividend of 15pc, amounting to BD6.9m, and transfer of BD1.1m to the general reserve.

Commenting, Seef Properties chairman Essa Najibi said: “Despite the challenging economic circumstances in the local market, the company has been able to sustain its profits and revenues, due to the flexibility of the company’s operations and swift response to the fluctuations of the market. We will continue to strive through steady steps to further achieve growth and prosperity, as we aspire to a better future that is supported with the diversity of our investment portfolio.”

Mr Najibi added: “The sustainability of our earnings, despite the high competition in the market, reflects the sound strategies that we have set in order to move forward towards wider horizons. Through this framework, we seek the continuity of the company’s leadership in the retail, hospitality, entertainment and real estate development sectors.”

“The board is committed to cementing the company’s financial position and expanding its contribution to the national economy through exploring more promising investment opportunities in the real estate development and entertainment sectors, with a focus on developing multi-purpose projects that serve a larger segment of the community.”

Seef Properties chief executive Ahmed Yusuf said: “Seef Properties has been able to take stable strides towards achieving more success in the past year. This comes as a result of our firm values and strategic plans. We are keen on maintaining consistency between the aspirations of our clients and those of our own. That can be achieved by seizing the promising opportunities in the local market, expanding our investment activities in new sectors and bolstering the company’s sustainable development.

“The main priorities 2020 are the completion of Al Liwan multi-purpose real estate project in Hamala, with the continuation of lease contracts signing and the commencement of delivery of retail stores. The company is also aiming to become the pioneer in entertainment in the kingdom by introducing unique programmes.”

As for the retail sector, Mr Yusuf said the commercial malls operating under the company’s umbrella are maintaining the same annual pace with regards to attracting visitors and shoppers, confirming that the company is enhancing shoppers’ and visitors’ experience with the introduction of unique promotional campaigns, in order to achieve a quantum leap in clients’ experience.

Commenting on the hospitality sector, he said: “Fraser Suites Seef Bahrain has maintained good annual occupancy rates, despite the competition in the market. The technical services in the hotel have been upgraded last year, and we are currently working on a comprehensive upgrade for the facilities with the aim of providing best services to the clients.”

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