x Abu Dhabi, UAESunday 23 July 2017

Abu Dhabi's Reem Island jump starts Sorouh's revenue and profits

Sorouh Real Estate posted more than Dh1 billion in revenue in the first half of the year, thanks to handovers on Reem Island.

April 17, 2011 (Abu Dhabi) Reem Island viewed from roof of Abu Dhabi Mall April 17, 2011 (Sammy Dallal / The National)
April 17, 2011 (Abu Dhabi) Reem Island viewed from roof of Abu Dhabi Mall April 17, 2011 (Sammy Dallal / The National)

Sorouh Real Estate generated Dh1 billion in revenue from the handover of units on Reem Island as the company's profits jumped 33 per cent in the first half of the year.

In the second quarter alone the company today reported Dh1.22 billion in revenue compared to Dh190 million in the same period a year ago. Net profit for the second quarter was Dh125 million compared to Dh20 million a year ago.

The company's net profit for the first half of the year was Dh202 million, a jump from Dh152 million last year. Last year the bulk of the company's revenue was generated by high margin land sales, chief financial officer Richard Amos said.

Sorouh handed over a total of 448 units in Sun and Sky and the Abu Dhabi Aviation complex in the first half, the company reported.

The company's bottom line was aided by a 20 per cent reduction in costs, including a 17 per cent reduction in staff from a year ago.

The company has more than Dh1.3 billion in cash and has no immediate plans to seek additional financing, Mr Amos said.

"Our cash position is very strong," Mr Amos said. "For the rest of the year we have sufficient cash to meet our capital expenditure requirements."