Dubai: Dubai Investments (DIC) reported Dh516 million net profits for the first half of 2016, up 2 per cent compared to Dh506 million in the same period last year.
The company’s total income was 18 per cent higher at Dh1.37 billion compared to the Dh1.16 billion generated in the first half of 2015.
During the first six months of this year DIC’s rental incomes increased by 20 per cent to Dh424 million, while contract revenues increased by 8 per cent to Dh236 million. The company also generated Dh186 million gain related to disposal of subsidiaries and valuation gains of Dh86 million on investment properties.
Sale of goods declined marginally to Dh450 million. Mark-to-market investments offset the result by Dh27 million. In the first six months of 2016, earnings per share increased to Dh0.13 from Dh0.12 last year.
“Dubai Investments delivered a solid set of financial results, completed a number of important transactions and is in a strong position to deploy capital into attractive investment opportunities to drive future growth,” said Khalid Bin Kalban, Managing Director and CEO of DIC.
Company’s total assets surged by Dh446 million to Dh15.7 billion at the close of the first half of 2016. This includes a healthy cash balance of Dh1.1 billion, after the dividend payout of Dh486 million in May 2016.
Total liabilities increased by Dh346 million since the beginning of the year to Dh4.4 billion as at 30 June 2016 mainly due to increase in stake of Properties Investments. Dubai Investments maintained a low debt to equity ratio of 25.9 per cent. The book value per share increased by 5.4 per cent to Dh2.64 as at 30 June 2016, compared to Dh2.50 at 30 June 2015.
“Building on the positive momentum generated in the first half of 2016 against the backdrop of a challenging market environment, the company plans to continue its diversification strategy, aimed at broadening its geographical footprint, growing its asset base to increase earnings and creating value for the shareholders,” said Kalban.