Waha Capital reports first quarter net loss due to revaluation of investment in AerCap

Company’s private investments business recorded a net loss

  

ABU DHABI – Waha Capital PJSC, a leading investment company in Abu Dhabi (ADX: WAHA), has reported a net loss of AED 57.8 million in the first quarter of 2019, with the company’s Asset Management business recording increased income, while its Private Investments unit recorded a loss due to the revaluation of its investment in AerCap Holdings.  

FINANCIAL HIGHLIGHTS

Q1 2019 Financial Highlights 

  • Net loss of AED 57.8 million
  • Total income of AED 189.9 million
  • Net profit from Asset Management business of AED 151.7 million
  • Net loss from Private Investments business of AED 165.7 million

Waha Capital’s Asset Management business, which manages emerging market fixed income and equity funds, recorded a net profit of AED 151.7 million in the first quarter, an increase of 28 percent from a year earlier. The funds, which have consistently outperformed key indices over several years, continued to deliver strong returns, while assets under management have also increased to AED 2.7 billion.

Meanwhile, the company’s Private Investments business recorded a net loss of 165.7 million in the three-month period, largely due to an adjustment of AED 100 million following a reassessment of the value of AerCap Holding’s recoverable amount. During the period, Waha Capital also recorded a loss on the disposal of 3 million shares in AerCap, as equity price collars on the shares matured and were settled.

Waha Capital benefited from a rise in income at its healthcare investment, Anglo Arabian Healthcare in the first quarter, and invested a further AED87.5 million in Dunia Finance.

Waleed Al Mokarrab Al Muhairi, Chairman of Waha Capital, said: “Waha Capital is implementing a long-term strategic transformation to a highly liquid portfolio of diversified investments that deliver strong cash flows. As we transition, the Asset Management division is creating sustained value, by increasing assets under management, and through consistent outperformance by our funds. Our Principal Investments business is focusing on high-growth investments in our areas of expertise, such as financial services and energy. Although short-term market conditions have impacted some investments, notably AerCap, Waha Capital remains in a strong position to deliver sustainable growth and an attractive return on equity in the coming years.”

Michael Raynes, CEO of Waha Capital said: “Waha Capital continues to build a strong business that creates long-term shareholder value through market cycles. In recent quarters, tough global market conditions have affected certain investments, and this has been reflected in the bottom line. However, the fundamentals of the company remain strong. Our equity and fixed income funds have delivered strong returns in the first quarter, building further on outstanding multi-year track records of outperformance, and we continue to attract institutional third-party investors. The Private Investments business is well diversified, and we plan to recycle capital into new high-potential investments. The senior leadership team at Waha Capital remains focused on prudent financial management and pursuing new growth opportunities in the coming years.”

ASSET MANAGEMENT HIGHLIGHTS

The year-to-date returns of the funds, attributable to owners, as of the end of March was 9.22% for the MENA Equity Fund, 11.36% for the MENA Value Fund, and 7.56% for the CEEMEA Fixed Income Fund. Total assets under management increased to AED2.7 billion at the end of the first quarter, from AED 2.5 billion at the end of the fourth quarter of 2018.

PRIVATE INVESTMENTS HIGHLIGHTS

AerCap

In the first quarter, Waha Capital disposed 3 million Aercap shares equivalent to a 2.1% stake in the company for a consideration of AED 490 million. During the period, AerCap carried out a share buyback programme, which Waha Capital did not participate in. Waha Capital’s stake in the company stood at 10.3% at the end of March, down from 12% at the end of December 2018.

Petronash

In the first quarter, oil and gas services firm Petronash recorded a rise in revenue to US$36 million, with EBITDA (earnings before interest, tax, depreciation and amortisation) of US$5.4 million. Waha Capital acquired a 35% stake in Petronash in August 2018, with an option to increase its stake to 50%.                      

Channel VAS

Dubai-based fintech firm Channel VAS, in which Waha Capital holds a 19.5% stake, reported a year-on-year increase in revenue of 29.8% to AED 55 million.  The company, which is a premium provider of fintech solutions for mobile network operators, is present in over 25 countries, with access to over 500 million mobile subscribers.

Anglo Arabian Healthcare

Anglo Arabian Healthcare, in which Waha Capital owns a 95% stake, reported a 21.9 % increase in consolidated revenue to AED78.9 million in the first quarter. The company owns and operates 27 business assets, employing more than 900 people and serving over 800,000 patients.

About Waha Capital

Waha Capital is an Abu Dhabi-listed investment company that offers shareholders and third-party investors exposure to high-potential opportunities in diversified asset classes. The company manages assets across several sectors, including aircraft leasing, healthcare, financial services, energy, infrastructure, industrial real estate and capital markets.  Through its Principal Investments unit, Waha Capital has established a strong investment track-record, deploying capital in sectors that display robust demand fundamentals and that have been prioritised by governments in the Middle East and North Africa region.

The company has also built a strong capability in managing global and regional credit and equity portfolios, which have enhanced the diversification and liquidity of Waha Capital’s balance sheet. The excellent performance of the company’s principal investments and capital markets portfolios has laid the foundations for the launch of an asset management business aimed at third-party investors.

Established in 1997, Waha Capital benefits from a roster of prominent local shareholders that includes Mubadala Investment Company.

© Press Release 2019

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