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Wed 22 Jul 2009 11:01 AM

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Sorouh Q2 profits 75.5% down

Abu Dhabi's second-largest property developer posts second-quarter net profit of $41.08m.

Sorouh Q2 profits 75.5% down
Q2 RESULTS: Sorouh Real Estate posted a second-quarter net profit of AED150.98m.

Sorouh Real Estate posted a second-quarter net profit of AED150.98m ($41.08m), down 75.5 percent from the year-earlier period, driving shares lower.

Abu Dhabi's second-largest property developer by market value said it earned net profit of AED281.42m in the first half of the year, compared with AED977.61m a year earlier, the firm said in a statement on Wednesday.

Sorouh reported a net profit of AED687.04m in the second quarter of 2008.

Revenues for the half of 2009 fell to AED1.3bn, compared to AED1.69bn in 2008. Second quarter revenues were down to AED978m from AED1.1bn in the same period last year.

The company said results were in line with its expectations and reflected its strategy to focus on "cash conservation" and "management of operating costs".

The company said its Abu Dhabi developments remained on schedule and expected to see a "gradual quarter-on-quarter improvement" on the back of unit sales and rental income from a number of its projects.

Developers across the UAE have suffered the impact of the global financial crisis which put an end to a six-year construction boom.

The downturn resulted in the cancellation of hundreds of billions of dollars worth of projects in the recent months while valuations and sales fell.

Sorouh's first quarter results fell by more than half compared to last year. (Reuters)

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