Abu Dhabi’s Sorouh sees plunge in quarterly profits

Abu Dhabi’s largest developer posts 42% fall in Q1 net profit, gives no reason for decline
Abu Dhabi’s Sorouh sees plunge in quarterly profits
Sorouhs managing director Abubaker Seddiq Al Khouri said the company had seen positive early indicators of rising demand in the property markets
By Joanne Bladd
Thu 28 Apr 2011 11:02 AM

Sorouh, Abu Dhabi’s largest developer by market value, saw first
quarter net profit tumble 42 percent despite a moderate rise in earnings.

The state-backed developer posted a first quarter net profit
of AED76.3m ($20.8m), down from AED131.6m in the same period a year earlier,
the company said in a statement to the Abu Dhabi bourse Thursday.

The reasons for the fall in profit were not disclosed. The company
said its Abu Dhabi developments remained on track with a focus on maintaining
delivery schedules.

Revenues for the quarter rose by five percent to AED452m,
from AED430.7m in the year-earlier period, the company said.

Managing director Abubaker
Seddiq Al Khouri said the company had seen positive early indicators of rising
demand in the property markets.

“A
number of unit sale and leasing transactions have started to come through,” he
said.

Sorouh's chief financial officer said earlier this month the
company expects to complete projects worth AED13bn ($3.54bn) with delivery of
some 7,000 units by 2014.

The company has stalled its mixed-use projects in Egypt and
Morocco in the wake of widespread civil unrest in the North African countries.

Sorouh's results follow that of the UAE's biggest developer
Emaar, which reported 45 percent drop in quarterly profits, as revenues dipped.

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