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Wed 1 Aug 2012 02:21 PM

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Abu Dhabi's Waha slips to Q2 loss on higher provisioning

Firm posts US$3.4m loss after making significant provisions for doubtful loans, statement shows

Abu Dhabi's Waha slips to Q2 loss on higher provisioning
Waha Capital CEO Salem Rashid Al Noaimi.

Abu Dhabi's Waha Capital swung to a second quarter net loss, the company's financial statement showed, as provisions on assets and loans weighed on the balance sheet.

Waha, whose shareholders include Abu Dhabi government entities, posted a AED12.4m (US$3.4m) loss for the three months to June 30, against a net profit of AED6m in the second quarter of 2011.

"The decline was driven mainly by a one-off gain on sale of investment in first half of 2011 and provisions taken on some assets in the first half of this year," the statement said.

Waha booked AED16m as provision for doubtful loans and receivables and AED7.3m towards impairment of operating lease assets in the first half of this year, the statement said.

The firm's operating income rose to AED33.1m in the second quarter compared to AED21.8m in the year-ago period, according to the statement.

But net income for the first six months of the year dropped 90 percent from the corresponding period in 2011 to AED3.5m.

Waha saw an increase in its holding of aircraft lessor AerCap to 22.2 percent from 21.3 percent after it decided against participating in a share repurchase scheme.

"Waha Capital's shareholding may increase further if it decides not to participate in this year's second repurchase programme," the statement added.