UAE Sorouh’s CEO positive despite surprise Q4 net loss

Real estate major fails analysts' estimates; posts $7.9m loss on rising finance costs.
UAE Sorouh’s CEO positive despite surprise Q4 net loss
By Thomas Atkins
Thu 29 Jan 2009 09:11 AM

Sorouh Real Estate posted a 29 million dirham ($7.90 million) surprise loss in fourth-quarter net profit on Thursday, due to rising finance costs, missing analysts' forecasts.The company said it posted an "unrealised loss" on financial assets of 35 million dirhams ($9.53 million) for the year and that it had 117 million dirhams ($31.87 million) in exposure to equities through hedge funds.

The company's full-year profit rose to 1.784 billion dirhams, compared with 1.257 billion dirhams in 2007, Sorouh Real Estate said in a statement, without giving quarterly data, which Reuters calculated from previous financial statements.

Analysts forecast of the company's fourth quarter profit ranged from 376.08 million dirhams ($102.45 million) to 400 million dirhams ($108.97 million), according to a Reuters survey last month.

Sorouh Real Estate earned 1.81 billion dirhams in the first nine months of 2008 and 483.91 million dirhams in the fourth quarter of 2007.

The company said 2009 would be slower than 2008 but that it was confident of long-term prospects after the group posted a surprise loss for the last quarter of 2008.

"We accept that 2009 will be slower than 2008, given the global financial situation, but we remain confident of the long-term outlook for Abu Dhabi and for Sorouh," said Mounir Haidar, Sorouh's Chief Executive Officer, in a statement.

Abubaker Seddiq al-Khouri, managing director, said: "We remain confident that we are positioned as positively as we can be for 2009. Sorouh strengthened its cash position in 2008 to ensure we have the necessary liquidity in place for the coming year and beyond." (Reuters)

For all the latest business 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.