UAE conglomerate reports net profit of $17.3m as revenues fall by 13.5% on Q2 2011
UAE conglomerate Dubai Investments, which has been looking at opportunities to divest some of its businesses, posted a 54 percent decline in second-quarter net profit on Sunday as revenue dropped.
The company, in which sovereign fund Investment Corp of Dubai (ICD) owns 11.5 percent, reported a net profit of AED63.4m ($17.3m) in the second quarter compared to AED138.3m in the same period in 2011, according to the quarterly balance sheet released on Dubai's bourse.
Revenue for the quarter dropped to AED630.3m from AED728.8m, a 13.5 percent fall. The company posted a gain on the fair value of investment properties of AED28.3m, compared to AED113.1m in the second quarter of 2011.
Dubai Investments, whose manufacturing business was hit by political unrest in the Gulf Arab region, said earlier this year that it was eyeing an exit from some of its businesses and was reviewing opportunities.
The company, which has interests in several sectors including property and manufacturing, had total assets worth AED13.6bn at the end of the second quarter, Sunday's statement showed.
The conglomerate has said it wants to raise up to AED1bn this year through the issue of sukuk, or Islamic bonds, to finance expansion of some manufacturing units and repay debt.