Nakheel says H1 net profits up by 36%

Dubai's indebted developer says performance buoyed by number of property handovers
Nakheel says H1 net profits up by 36%
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By Reuters
Mon 30 Jul 2012 04:09 PM

Nakheel Properties, the indebted state-owned developer, said its first-half profits jumped 36 percent on Monday, buoyed by property handovers on several projects.

Nakheel, whose extravagant developments at the height of Dubai's property boom contributed to the emirate's debt woes, has been slowly recovering from the crippling real estate collapse.

The developer said net profit was AED767m ($208.82m) in the first six months of the year, up from AED562m in the year-ago period.

Revenues rose to AED3.1bn in the first half, up 112 percent from the corresponding period a year ago, it said in a statement.

Nakheel, builder of man-made islands in the shape of palms and a map of the world, has made cash payments of about AED8.6bn to trade creditors as part of a $16bn debt restructuring plan agreed last year.

The company - brought under direct government control as part of the restructuring of its parent Dubai World - said about 3,500 units have been delivered since the start of the restructuring.

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