Abu Dhabi's Waha Capital says Q4 net profit tumbles

Investment firm sees sharp fall in quarterly profit as provision for doubtful investments weighed on earnings
Abu Dhabi's Waha Capital says Q4 net profit tumbles
By Reuters
Mon 30 Jan 2017 02:45 PM

Abu Dhabi investment firm Waha Capital’s fourth-quarter net profit fell sharply as a provision for investments weighed on earnings, data from the company showed on Monday.

Waha, which owns a stake in New York-listed aircraft leasing firm AerCap Holdings, made a net profit attributable to shareholders of 19.5 million dirhams ($5.3 million) in the three months to Dec. 31.

That compared with 121.0 million dirhams in the fourth quarter of 2015. A one-off provision for changes in valuations of some principal investments drove profit lower, the company said without elaborating.

Waha made a full-year profit of 407 million dirhams, down 30.7 percent from 2015, the statement said.

Total income from the principal investments division, which includes portfolio companies AerCap, Dunia Group, Waha Land, Stanford Marine Group, MENA Infrastructure Fund and National Petroleum Services, fell 21 percent to 514.4 million dirhams.

AerCap, in which Waha owns a 15.23 percent stake, reported a steady operating performance in 2016 but Dubai-based consumer finance firm Dunia and oil and gas services company Stanford were affected by challenging operating environments, Waha said.

However, total income generated by the capital markets division jumped 76 percent to 345.8 million dirhams last year.

The board recommended a cash dividend of 0.20 dirham per share, unchanged from the previous year.

Waha's shares edged down 0.4 percent on Monday in a flat overall stock market.

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