-          2017 Q4 net profit at AED 158.1m, compared to AED 19.5m in Q4 2016

-          Return on equity of 11.7% for 2017, compared to 10.5% in 2016

-          Divestments of PHD and NPS crystalize value creation

-          Principal investments division acquired significant minority stake in Channel VAS, a rapidly growing financial technology company

ABU DHABI: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), has reported a preliminary net profit of AED 425.9 million, an increase of 4.6 percent from a year earlier, due to gains from divestments and lower costs.

The company reported a net profit of AED 158.1 million in the fourth quarter of 2017, compared to AED 19.5 million in the same period of 2016, an increase of 710.8%. The main contributors to this significant increase were two transactions in the fourth quarter of 2017, which resulted in the booking of gains on disposal.

A divestment of a 93 percent stake in Proficiency Healthcare Diagnostics (PHD), owned by Waha Capital through Anglo-Arabian Healthcare (AAH), delivered significant value. PHD had grown significantly since Waha Capital acquired it in 2013, doubling its revenues and earnings.

In addition, Waha Capital agreed to sell its stake in UAE-based National Petroleum Services to NASDAQ-listed National Energy Services Reunited (NESR) in a cash and shares transaction. This was a value-creating transaction, which freed capital and will give Waha Capital a liquid stake in NESR, a company that is well positioned to be a leader in the oil and gas sector globally.

Commenting on the earnings results, His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital said:

"We have achieved good financial results in spite of the challenges facing the global economy and the capital markets, alongside the geopolitical factors which the region is experiencing.

The company's financial indicators reflect the success of its strategy to diversify assets, income resources and its investment portfolio, while the continued growth in net profits in general and operating profits in particular, reflect the company's growing ability to gain a bigger share of the investment market.

With a prudent approach to managing the company's financial resources, Waha Capital today has a strong balance sheet and the potential to move ahead with the next phase of expansion while pursuing more investment opportunities.

The company will continue its efforts to achieve rewarding returns for its shareholders by continuing to diversify its asset portfolio to include new sectors and investment areas.

Salem Rashid Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital, added:

Waha Capital manages its portfolio of investments actively, and we look to crystalize the value that we create when appropriate. In 2017, we took advantage of opportunities to divest assets, increase the liquidity of our portfolio, and to acquire a stake in a fast-growing fintech firm. Meanwhile, our asset management division continues to produce strong income streams, and we are making progress in attracting third-party investors, and increasing that fee income. Waha Capital has remained robust through a tough operating environment in the last couple of years, and we now look forward to seizing opportunities to create further shareholder value.

During the year, Waha Capital also further diversified its principal investments portfolio by acquiring a significant minority stake in Channel VAS a rapidly expanding fintech company with an addressable base of over 500 million mobile subscribers, who often do not have access to other financial services.

-Ends-

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 Capitals balance sheet. The excellent performance of the companys 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 Development Company, and a distinguished board, chaired by H.E Hussain Jasim Al Nowais.

For further information, please visit www.wahacapital.ae or contact:/
Amer Aidi
Head of Marketing & Corporate Communications, Waha Capital
Tel: +971 2 403 9305
Mob: +971 56 329 6437
E-mail: amer.aidi@wahacapital.ae