The Abu Dhabi-listed firm sees however gains in income from investment in quarter
Waha Capital's second quarter net profit falls 36 per cent on AerCap adjustment
Waha Capital, the Abu Dhabi-based investment firm, said second quarter net income fell 36 per cent, dragged down by an adjustment of Dh66.6 million against the share of income from the New York-listed airline leasing company AerCap Holdings in which they have a stake.
Net profit in the three months ended June decreased to Dh95.6m compared to Dh130m in the year earlier period, the company said. Income from financial investments rose 39 per cent to 99.7m in the second quarter from Dh60.4m in the same period last year.
"Our principal investments portfolio remains solid, with income only down because of an accounting treatment of our stake in AerCap, despite the company's strong financial and operational performance this year," said Salem Rashid Al Noaimi, chief executive officer and managing director of Waha Capital.
The Abu Dhabi-listed firm, said total income in the quarter slipped to Dh287.7m compared to Dh288.8m last year, while total expenses rose 12 per cent to Dh182m from Dh162.4m in the corresponding period last year.
The company did however see a sharp rise in income from financial investments but overall total income fell and total expenses rose during the quarter. The reassessment of AerCap's was due to the company's share price trading at a lower multiple over a prolonged period.
"Waha Capital's robust balance sheet, including a healthy cash position, means that we are well positioned to move ahead with our strategy to grow our asset management business and to deploy additional capital through our principal investments divisions," said Mr Al Noaimi.