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Tue 3 Mar 2009 10:15 AM

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Qatar's Barwa 2008 net profit falls 43%

Real estate co's profit drops to $82.39m on loss booking on value of investment properties - paper.

Qatar's Barwa Real Estate Co reported a 43-percent drop in 2008 net profit to 300 million riyals ($82.39m) as it booked a loss on the value of investment properties, Gulf Times reported on Tuesday.Barwa said it made a loss of 109 million riyals "on appraisal of investment properties", the daily newspaper reported.

Based on the full-year data, Barwa's net profit in the fourth quarter was about 1 million riyals, according to Reuters calculations based on nine-month 2008 profit of 299 million riyals reported by the company.

That would be down 99.5 percent from the year-earlier quarter, when it earned about 204 million riyals.

In a separate statement, Barwa said it had booked a loss of 109 million riyals "on appraisal of investment properties" last year. Staff costs and general expenses also rose, it said.

"2009 will be full of challenges in light of the global financial crisis," Barwa Chairman Saad al-Saad said in the statement. The stock fell as much as 7.3 percent in early trading.

Based on the full-year data, Barwa's net profit in the fourth quarter was about 11 million riyals, according to Reuters calculations based on nine-month 2008 profit of 299 million riyals released by the company.

That would be down about 95 percent from the year-earlier quarter, when it earned about 204 million riyals.

In January, Qatar's government ordered Barwa, an affiliate of state-owned Qatari Diar, to merge with Qatar Real Estate Investment Co. (Reuters)