Bahrain's Seef Properties reports $3.3mln net profit

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MANAMA: Seef Properties has reported a net profit and comprehensive income of BD1.26 million during the first quarter of 2021, compared to BD1.81m for the same quarter of last year, with a decrease of 30.21 per cent.

The decrease is attributable to the continuing repercussions of the outbreak of the Covid-19 pandemic on the entertainment, hospitality and retail sectors, in addition to the pandemic’s adverse impact on cinema theaters and children’s entertainment centres, which remain closed for over a year.

Diluted earnings per share attributable to the parent for the first quarter of 2021 amounted to 2.74 fils, compared to 3.93 fils for the same quarter of the previous year.

The company’s operating profit stood at BD2.65m during the first quarter of 2021, compared to BD3.43m for the same quarter of last year, with a decrease of 22.89pc.

Revenues decreased in the quarter by 23.30pc to BD3.08m, compared to BD4.01m for the corresponding quarter of last year, mainly due to the outbreak of the Covid-19 pandemic, which continues to affect the kingdom’s economic landscape, including the Company’s operations and activities.

Total equity (after excluding the equity attributable to minority) for the quarter decreased by 0.68pc to BD151.13m, compared to BD152.17m as of end-2020.

Total assets for the period ended March 2021 increased by 1.63pc to BD176.10m, compared to BD173.28m as of end-2020.

Commenting, Seef Properties chairman Essa Najibi said: “Despite the continuing repercussions of the pandemic on all economic sectors, Seef Properties has been able to overcome various challenges to maintain the momentum of its profitability and the stability of its financial results, such ability being attributable to the flexibility of its business model and the diversity of its investment portfolio enabling it to implement its strategic objectives and strengthen its position as one of the leading and most innovative real estate development companies in Bahrain.”

Mr Najibi added: “The company continuously aspires to achieve optimum financial, administrative and operational performance, relying on carefully considered plans, best practices and innovative solutions to maintain the value of its investments while also diversifying its sources of income in its main business sectors to serve the interests of its partners, shareholders and customers alike. We are optimistic about life gradually returning to normal in the upcoming months and the recent recommendations of the authorities to recommence operations in cinemas and family entertainment centres for vaccinated and/or recovered individuals, starting from the first days of Eid Al Fitr. Such recommencement of operations is likely to have significant impact in reviving the interest in commercial malls and would directly contribute to the revival of other related economic sectors.”

Seef Properties chief executive Ahmed Yusuf said: “We are welcoming the year 2021 with a stable operational performance, which reflects the Company’s ability to adapt to all variables and unforeseen circumstances. Our financial performance was not affected in the first quarter of last year as the onset of the virus only commenced in March. Nonetheless, operations in the first quarter of this year have been affected by the pandemic, which is seen in the percentage in decline. Despite the pandemic’s repercussions on all vital sectors, Seef Mall in Seef District continues its leadership as a unique shopping destination in the kingdom, with occupancy currently at 88pc.”

Mr Yusuf added: “The entertainment sector was the most affected during the first quarter of this year due to continued closures. This in turn impacted the company’s operational performance, but we are hopeful that it will significantly improve and contribute to achieving better financial and operational results during the current year and further reinforce the Company’s position in the entertainment and hospitality sectors locally.”

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