Abu Dhabi: Abu Dhabi-based Waha Capital's full year net profit fell 37.65 per cent to Dh155.31 million in 2011 amid challenging global market conditions, the company said yesterday.
In a statement, Waha Capital, which makes strategic investments in aircraft leasing, maritime services for oil and gas, fin-ancial services and industrial property development, said its businesses held up well against a testing global economic backdrop.
"The company recorded a net profit of Dh92.95 million during the fourth quarter of 2011, against Dh172.35 million for the same period the previous year, mainly due to a gain that was recorded for the transaction involving the acquisition of a stake in aircraft leasing firm AerCap," Waha Capital said.
Salem Rashid Al Nuaimi, Chief Executive Officer of Waha Capital, told Gulf News: "The overall performance of our portfolio was good in 2011 considering the tough global market conditions. The return on equity was 7.1 per cent for the year, which for an investment company is a reasonable return."
He said 2010 was a record year for the company in terms of net profit and there were several transactions in the fourth quarter of that year which drastically impacted Waha Capital's bottomline.
"We see 2012 to be another tough year for the global economy. However, we are well positioned to weather the storm," Al Nuaimi added.
He said the company will continue to "increase efficiency in the way we manage our assets, and further-develop our relationships with key stakeholders in Abu Dhabi, the region, and with partners in the wider investment community."
In 2011, Waha Capital arranged a $505 million (Dh1.854 billion) revolving loan facility with 11 local and international banks. The facility is being used to support existing and future investments, including Waha Land's industrial real estate project Almarkaz in Abu Dhabi.
The value of Waha Capital's assets stood at Dh4.23 billion as of December 31, up 11.4 per cent from 2010.
The first phase of Almarkaz, an industrial real estate project that was announced in 2009 and which is operated and owned by Waha Land, is now nearing completion, the company said.
The units will be delivered to end users and real estate investors during the first half of this year, it added.
Waha Capital's shares on the Abu Dhabi Securities Exchange remained unchanged yesterday at Dh0.50.
The highlights of 2011 included AerCap, in which Waha Capital has a 21.3 per cent interest, strengthening its cash position through the sale of its AeroTurbine business, while committing to nearly $1 billion of purchases of aviation assets for delivery in 2011.
Stanford Marine Group, in which Waha Capital holds a 49 per cent stake, continued to expand its fleet, adding another six vessels last year.
Consumer finance company Dunia, in which Waha Capital has a 25 per cent stake, moved into profit for the first time since its formation only a few years ago.
balance sheet
dipping earnings
Dh92.95m
net profit during the fourth quarter of 2011
7.1%
return on equity for the period under review
