Waha Capital swings to profit in second quarter on higher operating income
Waha Capital, which counts Abu Dhabi’s Mubadala Investment Company as one of its shareholders, swung to a profit in the second quarter as operating income increased.
Net profit attributable to the owners of the company for the period ending June 30 reached Dh267.2 million, compared to a loss of Dh124.3m during the same period last year, the company said in a filing to Abu Dhabi Securities Exchange, where its shares trade.
“The fact that we were able to achieve one of the highest revenues for a single quarter in our history is a remarkable achievement, given the current economic conditions,” chief executive Amr AlMenhali said yesterday.
“Once again, our asset management division was able to outperform its peer group and to position our portfolio to meet whatever challenges may arise and our private investments division moved back into profit.”
Impairments of equity-accounted associates and joint ventures fell by 90 per cent year on year to Dh10m while losses from equity-accounted associates and joint ventures came down to Dh9.8m from Dh99m last year.
Waha Capital’s asset management business made a profit of Dh300.1m in the second quarter, compared to Dh87.5m during the same period last year.
The company’s private investment business, which invests in sectors such as health care, FinTech, energy and financial services, recorded a net profit of Dh3.2m, compared to a loss of Dh186.1m last year.
During the first half, the company’s losses fell to Dh27.2m, from last year’s Dh182.2m, on the back of lower impairments of equity associates and joint ventures.
The Abu Dhabi-based company said it plans to invest $120m (Dh440.7m) in US-listed companies in the healthcare, technology and telecoms sectors.
“Our new investment programme, initially targeted [at] the US, will eventually cover the regional market and help put us on a strong footing to deliver significantly higher returns moving forward,” Mr AlMenhali said.
“We are also marking a new milestone for the company through a number of new initiatives, including the launch of an Islamic fund which signals the development of a full Sharia-compliant offering in the future.”
Waha has invested in companies such as Dubai FinTech company Channel VAS, Dunia Finance, National Energy Services Reunited and Petronash Holdings.
It sold its stake in New York aircraft leasing company AerCap last year and generated net cash proceeds of Dh933m for the company.
Total assets at the end of June stood at Dh9.49 billion, up 2 per cent since the end of last year.
“We not only strive to grow revenue when times are good, but to protect our investments in times of uncertainty,” Waha Capital chairman Waleed Al Muhairi said.
Waha Capital plans to invest $120m in US-listed healthcare, technology and telecoms companies