Nakheel announces 57% profit rise

Rainigade

Great news! Does this mean that Jumeirah Village Triangle will finally be finished? That we'll soon see an army of men-in-blue completing the works pending, rather than the trickle of one or two, sitting in the sand and sleeping in our garages?

Its only been four years since the majority of the villas were handed over, after all. District 1 is still under construction, so I'm guessing that some of Nakheel's 57% profit will go towards the completion of unfinished projects.

Right?

Berny Madoff

Food for thought, build big time, collect from buyers, deliver low quality or don't deliver anything, charge maximum for none existing services, don't pay suppliers. Then declare profits. This is what I call a good business model. Let's see how long it will last, what will be the payback (sooner or later). For me only 57% profit increase with such model is poor performance.

Patrick Holm

What about the poor people that Nakheel have taken money from for JPark houses and you have still not delivered on your promises 5 years later.

Bilal

It is manupulation strategy money will be paid in long 1 5 Years in installement. Agreements are made previously and now profits are declared - Result - smart people.

Matts

I guess the confiscated toys of the tenants were really worth millions finally.......lol

frank

Please can someone explain how a company makes a profit when they are still in debt....am I the stupid one here. They are continually pleading to delay debt payments but shout loud when they make a profit....so does one assume that they are not paying there debt?

Red Snappa

Might I enquire as to whether debts to the remaining trade creditors have been sorted out, there seemed to be quite a number of residual claims still to be resolved, remembering a statement which went along the lines of, "we're not in hurry to settle them"!

I've also just read somewhere that responsibility for Jumeirah Golf Estates is to be handed over to Sheikh Mohammed's office from mid-February and that Nakheel with no longer be connected with JGE as of that date.

Merely speculating as to whether these factors will have any impact on future profitability?

Doug

How can Nakheel be making a profit? It's in debt. That means any surplus cash it has from its expenditure needs to be paid back to its creditors to reduce the debt burden. Logically then, Nakheel has not had a rise in profits of 57%. Once it pays this surplus of 2 billion dirhams towards its 7 billion dirham debt, it has reduced its debt by 29%.

Assuming of course, it's paying its debt.....

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