Al Mazaya Holding’s net profit rises in H1

DUBAI — Al Mazaya Holding has announced its financial results for the first half of 2016, with the company reporting a net profit of AED50.26 million in the first half of 2016, compared to AED49.73 million in the corresponding period for 2015. Earnings Per Share (EPS) reached 8.09 fils, compared to 8.03 fils, in the first half of 2015. Speaking after the recent meeting of the board of directors, Eng. Ibrahim Al Soqabi, Group CEO of Al Mazaya Holding, said: “Al Mazaya Holding has achieved new heights with the results for the first half of 2016 proving that our prudent strategy, comprehensive vision and well-formulated targets are continuing to drive growth across all areas of the business.” “The company was able to follow the schedules precisely and efficiently, boosting the process of sales, leasing, delivery and increasing operating revenue by 17.2 per cent to AED 311.91 million, by the end of H1-2016. This is in comparison to the AED 266.11 million generated over the same period last year,” Al Soqabi added. Al Mazaya’s Group CEO also credited the jump in revenues to strong marketing campaigns, with huge revenues generated from sales increasing by 16.7 percent to AED266.50 million, as opposed to AED 228.36 million, in H1-2015. Revenues generated from leasing activities grew by 18.2 per cent, to AED43.81 million, up from AED 37.08 million, for the same period last year. Al Soqabi said the significant increases noted in its rental revenues was due to the entry of Al Olia Tower (Riyadh, KSA) into its portfolio of income-generating projects, from Q4 2015. Al Soqabi also added that the company continued to achieve high occupancy rates in its income-generating projects, such as the 95 per cent occupied Sky Gardens, in Dubai International Financial Centre (DIFC), almost 100 per cent occupied Al Mazaya Towers (all 3 buildings), Kuwait City, and almost 100 per cent occupied projects, across KSA and Dubai. The company has also achieved revenue increase from its portfolio of properties available for sale, such as the office space in Mazaya Business Avenue. In addition, the company sold and delivered a large number of residential units in Queue Point Dubai and Ritim Istanbul, in Turkey. With regard to the Al Mazaya’s financial results for H1-2016, Al Soqabi said: “Al Mazaya continued to grow its operational performance in the first half of the year, achieving net profits in line with well formulated targets.” He added that assets totaled AED 2,842.97 million – as compared to AED 3,216.09 million achieved for the same period, in 2015, which has resulted from the handover of units in Qpoint project, which was included in the company’s statement of income of H1-2016. Correspondingly, shareholders’ equity amounted to AED1,294.88 million, in H1-2016, a 6.3 per cent growth compared to H1 2015. Al Soqabi further clarified that the company’s total short term liabilities decreased to AED1,45409 million, in H1-2016, representing a 23.89 per cent fall over H1-2015 figures, attributing this decrease mainly due to the fact that company’s loans are transferred to medium and long term liabilities as well as some liabilities had been transferred to revenue, with payments being received from customers after the delivery of their residential units. “Al Mazaya’s success in getting its bank facilities reflects its strong financial position compared to its peers. The company’s liabilities-to-assets ratio is less than the required levels set for the Kuwaiti market. By structuring our facilities into medium and long-term maturities and managing financial costs, our periodic financial obligations have been cut,” Al Soqabi said.