Abu Dhabi-based Waha Capital reported a 710 percent increase in fourth quarter net profit in 2017 compared to the same period the previous year following two significant transactions, the company announced on Tuesday.
According to the company, fourth quarter net profits rose from AED 19.5 million ($5.31 million) in 2016 to AED 158.1 million ($43 million) in 2017.
The main contributors to the increase were a divestment of a 93 percent stake in Proficiency Healthcare Diagnostics (PHD), owned by Waha Capital through Anglo-Arabian Healthcare.
Additionally, Waha Capital agreed to sell its stake in the UAE-based National Petroleum Services to the NASDAQ-listed National Energy Services Reunited (NESR) in cash and shares transaction. In a statement, Waha noted that the transaction freed capital and gives it a liquid stake in NESR.
For 2017, the company reported a preliminary net profit of AED 425.9 million ($115.9 million), a 4.6 percent increase from 2016.
"We have achieved good financial results in spite of the challenges facing the global economy and the capital markets, alongside the geopolitical factors which the region is experiencing,” said Hussain Jasim Al Nowais, Waha chairman.
“The company's financial indicators reflect the success of its strategy to diversify assets, income resources and its investment portfolio, while the continued growth in net profits in general and operating profits in particular, reflect the company's growing ability to gain a bigger share of the investment market,” he added.
In 2017, Waha Capital also acquired a significant minority stake in Channel VAS, a fintech company with over 500 million mobile subscribers.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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