UAE-based Waha Capital swings into black with $23mln Q3 profit

Third quarter revenues propel Waha capital into profit

Investors monitor screens displaying stock information at the Abu Dhabi Securities Exchange

Investors monitor screens displaying stock information at the Abu Dhabi Securities Exchange

REUTERS/Stringer .

Waha Capital, a leading investment management company in Abu Dhabi, has posted a net profit of AED86 million ($23.4 million) in the third quarter (Q3) of 2020 as against a net loss of AED205 million in Q3 2019.

The company’s Public Markets division continued to outperform its peer group, leading the company back into overall profit. Its Waha Mena Equity Fund contributed strong returns for Waha Capital and third-party investors, and the Waha CEEMEA Credit Fund showed significant percentage improvements in performance. At the same time Waha Capital launched the Waha Islamic Income Fund SP in July to cater to a growing demand from investors for Sharia compliant instruments.

Waha Capital’s objective remains to progress and improve the asset base of the business, diversifying its investments and taking an active role in value creation for its portfolio companies in the energy, healthcare, real estate and financial services sectors.

Waleed Al Mokarrab Al Muhairi, Chairman of Waha Capital, said: “Waha Capital has made good progress on delivering its restructured business strategy implemented at the end of 2019. Both primary business divisions have demonstrated commendable resilience given the continuing challenging market conditions, and to an extent have recovered some of the ground lost at the beginning of the pandemic.”

Ahmed Khalifa Al Mehairi, Chief Executive Officer of Waha Capital added: “Our performance in the past quarter highlights the quality of our investment approach. We have the means and the appetite to grow both sides of our business and it is clear from our investors given the 43% rise in our share price in this past quarter that we are seen as a growth play.

“While we have exercised constraint in managing our expenses both in capex and staff recruitment terms, we have a number of new initiatives in the pipeline including a further high yield investment fund soon to be launched and regional Private Investment deals that will help to not only consolidate but also boost the growth that we are now witnessing.”

Key financial highlights for Q3 2020

• Total income of AED282 million, significant increase over Q3 2019 income (AED5 million)

• Total impairments of AED17 million compared to AED117 million

• Income contribution of AED72 million by Private Investments (vs Q3 2019 loss of AED151 million)

• Diligent management of costs reduced general and administrative expenses by 21%

• Net 3Q profit (attributable to owners of the company) of AED86 million compared to a net loss of AED205 million in Q3 2019.

• Net profit for first 9 months AED59 million, compared to AED387 million loss in 2019

With assets of AED8.8 billion as of 30 September 2020, Waha Capital aims to optimize and expand its investment portfolio, taking advantage of attractive pricing for opportunities in high-growth sectors internationally.

In August Waha Capital took a strategic stake worth AED184 million in, a leading NYSE-listed company in the online travel sector operating in Latin America. Waha Capital’s investment programme of up to US120 million into US equities revealed in August is also likely to be ongoing to the end of the year with a number of additional options currently being assessed. - TradeArabia News Service

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