Nakheel's nine-month net profit almost doubles

Indebted Dubai developer posts net profit of $299m for first nine months of the year

Dubai's indebted property developer Nakheel said on Sunday that net profit for the first nine months of the year nearly doubled, helped by property handovers and growing business in its retail and leasing segment.

Nakheel, whose developments at the height of Dubai's property boom contributed to the emirate's debt woes, has been slowly recovering from the crippling real estate collapse.

Net profit for the nine months ended September 30 was AED1.1bn ($299.5m), up from AED600m in the year-ago period, Nakheel said in a statement sent by email. The company did not provide any quarterly numbers.

Revenue for the nine months rose to AED4.5bn from AED2bn in the prior-year period.

Nakheel, builder of man-made islands in the shape of palms and a map of the world, said about 4,000 units had been delivered to customers since the start of its restructuring in August 2011.

The company, brought under direct government control as part of the restructuring of its parent Dubai World, said it had made cash payments of about AED9.4bn to trade creditors as part of a $16bn debt restructuring plan agreed last year.

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Posted by: Red Snappa

On this very subject, I've just learned two pieces of news:-

1) I understand that Nakheel are refusing to pay for the electrical cabling infrastructure that is required to connect third-party villa developments to the main power distribution at Jumeirah Golf Estates. Nakheel is saying this is the developer's job not their's so not to their account! Anyone got any further info ? Another stand off brewing perchance- some of those villas have been ready since the beginning of 2010, but owners unable to take handover without power supply.

2) Also relating to Jumeirah Golf Estates. Contractors Laing O'Rourke and ANC have pulled off site once more due to payment issues and work on the villas at Whispering Pines, Flame Tree Ridge and Fireside apparently ceased 2 months ago. Yet another feather in the cap for the reputation of Dubai's property sector.

Would anybody verify these two items? Cue for some deep services investigative journalism?

Posted by: Paolo C

Can only agree. Cash your invoices and don't pay your suppliers and profit will grow. Good job Nakheel. Great example for future generations.

Posted by: Berny Madoff

If you I don't pay my debts and don't deliver the goods to my customers, well I would be billionaire

Posted by: Red Snappa

Would be interested to see what the longer term forecasts look like, man cannot live by retail alone in one of the most crowded retail sectors in the world. Plus Nakheel under its $ 16.1 billion debt restructure plan has some simply enormous repayments to start making. $299.5 million profit in 9 months does not go a long way in that context.

Remember this all has to be repaid in between 5 and 8 years time, in fact you can probably deduct 12 months from that timescale now, profit and debt numbers which do not quite stack up perhaps?

Trying to cut rightful creditor payments down by 80 per cent, I agree completely unethical if you delivered a truly honest journeyman's invoice in the first instance, still does not provide the answer to the corporate conundrum above.

Posted by: peter

how does it feel to make profit with other peoples money???

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