Waha Capital reports 2016 preliminary net profit of AED 407 million

ABU DHABI, 30 January 2016: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), has reported a preliminary net profit of AED 407.2 million for 2016.

The company’s Capital Markets division recorded a strong rise in income, with its credit and equities funds continuing to outperform. Some assets managed by Waha Capital’s Principal Investments division made lower contributions to the company’s income partly due to prudent one-off provisions.

Waha Capital’s full-year net profit was 30.7 percent lower than in 2015 however the company delivered a strong return on average equity of 10.5 percent for the 2016 financial year. Fourth-quarter net profit totalled AED 19.5 million.

The preliminary results were announced following a board meeting in Abu Dhabi chaired by His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital. The board recommended a dividend of AED 0.20 per share, subject to approval by shareholders at Waha Capital’s annual general meeting.

Commenting on the earnings results, His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital said:

“These results demonstrate the success of Waha Capital’s strategy of asset and income diversification, with the company continuing to deliver a strong return on equity despite the challenging global macro-economic environment. The company’s prudent financial management means that Waha Capital benefits from a strong balance sheet, and is in an excellent position to implement the next phase of its growth strategy. The board and management remain focused on creating shareholder value, and are working hard to ensure that the company continues to expand and derives optimal performance from all its assets .The board’s recommended cash dividend is testament to the continued success and confidence in the long-term vision that we have set out for the company.”   

Salem Rashid Al Noaimi, CEO and Managing Director of Waha Capital added:

“Waha Capital has reported another set of robust financial results, with our diversified sources of income helping to cushion the impact of the prudent one-off provisions on some of our assets. We are firm believers in our portfolio companies and we expect income contributions from them to increase in the future. Our Capital Markets division saw significant income growth after its emerging market credit and equity funds delivered exceptional returns, adding to their excellent multi-year track-record. Meanwhile, our highly experienced investment teams continued to focus on creating maximum value across our investment portfolio. Waha Capital is in a strong position to take advantage of attractive investment opportunities when we see potential and value.”

Total income generated by the Capital Markets division increased 76 percent to AED 345.8 million in 2016.

The Waha CEMEEA Fixed Income Fund produced a total return of 20 percent in 2016, despite high volatility in the global credit markets as the U.S. Federal Reserve began to raise benchmark interest rates.

The Waha MENA Equity Fund gave a total return of 18 percent, and the newly established Waha MENA Value Fund produced a total return of 16 percent during the year.

Total income from the Principal Investments division, which includes portfolio companies AerCap Holdings, Dunia Group, Waha Land, Stanford Marine Group, MENA Infrastructure Fund and National Petroleum Services (NPS), decreased 21 percent to AED 514.4 million in 2016.

New York-listed aircraft leasing firm AerCap Holdings, in which Waha Capital owns a 15.23 percent stake, reported a steady operating performance in 2016.

As the world’s largest aircraft leasing firm, AerCap continued to generate a high volume of major contracts. The company signed lease agreements for 279 aircraft, purchased 38 aircraft, and executed sale transactions for 141 aircraft.               

Lower income contributions were reported from Dubai-based consumer finance firm Dunia Group and oil and gas services company Stanford Marine Group, which were both affected by challenging operating environments for their businesses.

During the year, Waha Land, a wholly owned company of Waha Capital, made significant progress on the next phase in its growth,  arranging a AED 426 million financing package for further development of its ALMARKAZ light industrial real estate project, following the successful leasing of existing facilities.

Waha Capital received gross distributions of AED 81.9 million from its investment in MENA Infrastructure Fund in the form of dividends and capital repayment. The fund, which was launched in 2007, successfully exited from two of its four investments in 2016.

Total revenue at Anglo Arabian Healthcare (AAH), which is held as a seed asset by the Private Equity division, increased by 18 percent in 2016, as the company continued to expand. AAH now owns 30 healthcare assets in the UAE, employing 900 people, and serving over 540,000 outpatients.