Abu Dhabi’s Eshraq to offset Dh979.83m in accumulated losses
This will be done against paid-up capital and could mark company’s turnaround
Dubai: Abu Dhabi based Eshraq Investments has received in-principle approval to set off accumulated losses of Dh979.83 million against its paid-up capital.
This step will “strengthen the company’s financial structure going forward and once implemented, will put Eshraq on track towards resuming dividend distributions,” it said in a statement.
Eshraq had a net profit of Dh7.5 million for the nine-month period ended September 30. The leasing and hospitality businesses — including residential apartments in DIFC and the Nuran Marina hotel apartments — had occupancy rates of 93 per cent and 89 per cent, respectively.
There is also the ongoing construction of Marina Rise on Reem Island, on track for completion by end 2020. This will be the “first development project to contribute to Eshraq’s profit”, the company added. The plan is to develop existing and new land banks with the intention of completing one project every 12-15 months.
The Eshraq board of directors has approved renewal of the share buy-back programme, subject to regulatory and shareholder approvals.
Discussions are on with Saudi authorities for the cross-listing of its shares on the Saudi Stock Exchange. The proposed plan for a capital reduction and the offsetting of losses will “further the Company’s opportunities in this direction”.