Dubai developer Nakheel H1 net profit up 54%

Gov't-owned property company made a net profit of $504 million in the six months to June 30

Dubai property developer Nakheel, which was a major victim of the emirate's financial crisis five years ago but is now recovering strongly, reported a 54 percent jump in profit for the first half of this year.

The government-owned company made a net profit of AED1.85 billion ($504 million) in the six months to June 30, up from AED1.20 billion in the corresponding period of 2013, it said in a statement on Wednesday.

The company did not provide any quarterly figures. However, Reuters calculations showed a net profit of AED1.22 billion in the second quarter compared to AED709 million a year earlier.

The company said profits were boosted by strong revenue from property development, as it handed over 627 units to customers in the period. It did not provide revenue figures.

Nakheel agreed a $16 billion debt restructuring in August 2011, which included $2.2 billion in bank debt, and scaled back grandiose plans such as building a one-kilometre-high tower.

But last month it said it was gearing up for substantial growth and planned to repay AED5.54 billion of outstanding debt to banks four years ahead of the restructuring schedule.

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