Dubai Investments, a diversified company in which sovereign wealth fund Investment Corporation of Dubai holds a stake, reported a 40 per cent increase in second quarter net profit on the back of gains on valuation of investments and lower impairments.
Net profit attributable to owners of the company for the three months ending June 30 rose to Dh211.7 million, the company said in a statement on Monday to the Dubai Financial Market, where its shares trade. Gains on fair valuation of investments increased fivefold to Dh51.1m during the period.
"Dubai Investments' strategy of diversification coupled with a robust business model have been instrumental in successfully facing down the challenges raised by the spread of Covid-19 pandemic,” Khalid Bin Kalban, vice chairman and chief executive of Dubai Investments, said.
Net impairment losses on financial and contract assets, on the other hand, declined 56 per cent to Dh2.08m and cost of sales fell 26.5 per cent to Dh307.4m.
The company said first half net profit fell 43 per cent to Dh202m due to “a one-off gain on an acquisition transaction in prior period and the impact of Covid-19”.
“The results for the first half of the year are an indication of our resilience in these unprecedented and taxing times," Mr Bin Kalban said.
“We have been carefully reviewing our cost structure with an eye on optimisation whilst continuing with our efforts aimed at sustained long-term growth," he added. "The group is focused on being adaptable and flexible in the current environment and is geared up to take advantage of opportunities that come our way.”
Net impairment losses on financial and contract assets in the first half climbed to Dh8.5m from Dh693,000 reported during the same period last year.
Set up in 1995, Dubai Investments has interests in various sectors including real estate, industrial, financial, healthcare and education.
The company, in which ICD holds an 11.54 per cent stake, owns businesses such as Dubai Investments Park, venture capital company Masharie, Al Mal Capital and the district cooling company Emicool.
Total assets at the end of June reached Dh21.4 billion, up 2 per cent since the end of 2019.
