Sorouh posts 45% decline in H1 net profit

Abu Dhabi's second largest developer sees revenues and net profit slump in Q2.
Sorouh posts 45% decline in H1 net profit
By Andy Sambidge
Tue 27 Jul 2010 08:46 AM

Sorouh Real Estate, Abu Dhabi’s second largest property developer by market value, said on Tuesday that net profit for the first half of 2010 had fallen by 45 percent.

Net profit was AED152m ($41.3m), down from AED281m for the same period last year, the company said in a statement to the Abu Dhabi Securities Exchange.

Revenues for the half year declined by more than 52 percent to AED621m from AED1,314m a year earlier.

The developer said net profit was boosted by the sale of one plot on its Shams Abu Dhabi project, income from 41 units at Golf Gardens and rental income from its property investment portfolio.

In Q2, Sorouh's net profit slumped to AED20m from AED151m in the same period in 2009 while revenues fell from AED978m to AED190m for the same period.

General and administration costs for the first half of the year rose to AED166m from AED148m in the same period last year. Sales and marketing expenses fell to AED23m, from AED30m.

For all the latest UAE 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.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.