Abu Dhabi: Waha Capital PJSC on Wednesday announced its half-year financial results, showing a Dh182.2 million net loss for the first half of the year and a Dh124.4 million net loss for the second quarter.
The group also announced that its private investment business, which includes a broad portfolio in sectors such as aviation, fintech, energy, health care and financial services, also recorded a net loss of Dh351.8 million in the first half of 2019.
Total income from its asset management business was positive showing a 64 per cent year-on-year increase to Dh395 million with a net profit of Dh239.2 million for the half year. The group’s assets under management also increased to Dh2.9 billion in total, up from Dh2.5 billion at the end of 2018.
“The company’s asset management division continues to demonstrate an impressive track record of outperformance, and our strategy is focused on building assets under management by leveraging our networks to attract third party investors,” said Waleed Al Mokarrab Al Muhairi, chairman of Waha Capital, commenting on the half year financial results.
“The principal investments division has invested in high potential businesses in the company’s areas of expertise and is focused on active value creation. While financial results in recent quarters have been impacted by losses associated with the collar hedge on the stake in AerCap Holdings, I am pleased that the company has implemented a strategy to deliver a rapid turnaround, returning to a path of sustainable growth,” Al Muhairi added.
Mohammad Al Nowais, managing director of Waha Capital, said the company’s diverse assets put it in a strong position for growth and a turnaround.
“Waha Capital’s first-half results show continued growth of our asset management business, with strong profitability metrics, while our principal investments unit was impacted by one-off losses. Higher financing costs also weighed on the company’s bottom line.
“Waha Capital remains highly resilient due to the diversification of its assets, and the management team is fully focused on creating value across the business, by taking an active approach to guide portfolio companies in their growth, and by building a strong asset management proposition,” he added.
The company also recently announced a new chief executive officer in July, with Amr Al Menhali set to take on the role starting in September. Al Menhali sits the boards of several financial companies and is also a board member of the UAE Banking Federation.