Abu Dhabi: Waha Capital, an investment company based in Abu Dhabi, reported a net profit of Dh1.6 billion for the first nine months of 2014, a near six-fold increase on the same period in 2013, the company said in a statement. This was largely due to a one-off gain recorded in the second quarter as the company unlocked part of the value of its stake in AerCap.

For the third quarter of 2014, the company recorded a net profit of Dh301.2 million, up from Dh107.1 million a year earlier, driven by strong contributions from the company’s stakes in AerCap Holdings and Dunia Finance.

According to the company, in the third quarter, AerCap again made a strong contribution to Waha Capital’s earnings, as the New York-listed company recorded a 117.6 per cent rise in earnings per share from a year earlier, due to its acquisition in May of International Lease Finance Corporation (ILFC).

During the quarter, Waha Capital also entered into a hedging and financing transaction, as part of the company’s strategy to de-risk and to lower its cost of capital, the company stated. This transaction involved hedging half of the company’s exposure to AerCap and raising approximately Dh2.1 billion (approximately $575 million), which will be used to partially repay existing debt and to fund new investment opportunities.

Commenting on the latest results, Hussain Jasim Al Nowais, chairman of Waha Capital, said: “In recent years, we have delivered very strong return on equity, and so far this year Waha Capital’s performance has been exceptional. We are well positioned for growth and remain fully focused on creating further shareholder value and carrying out a prudent investment strategy. Thanks to an extremely strong financial base, the company is well placed to fully participate in, and benefit from, the robust economic growth in this region.”

With the company reporting record earnings in the year to date, Waha Capital announced in September its intention to implement a share buy-back programme for up to 10 per cent of outstanding shares, to allow its shareholders to directly benefit from the company’s continued profit generation. The programme was approved by the UAE Securities and Commodities Authority on October 19, 2014.

Waha Capital’s assets stood at Dh9.3 billion as of the end of the third quarter, compared with Dh5.2 billion as at December 31, 2013.