Dubai Investments chief 'positive' about 2019 despite Q1 profit dip

Font Size

- Aa +

Tue 7 May 2019 09:43 AM

Dubai Investments chief 'positive' about 2019 despite Q1 profit dip

CEO Khalid Bin Kalban says various real estate developments are nearing completion

Dubai Investments has announced net profit of AED202 million ($55 million) in the first quarter of 2019, down from AED362 million for the same period last year.

Profit for Q1 2018 included an overall gain of AED333 million on acquisition of stake in Emirates District Cooling (Emicool), the company said.

Total assets increased to AED20.11 billion, compared to AED19.55 billion as at December 31, 2018 while the annualised return on equity achieved for the period was 6.4 percent, the company added.

Khalid Bin Kalban, managing director and CEO of Dubai Investments, said: "Dubai Investments reported gains of AED333 million in Q1 2018 and AED55 million in Q1 2019 on its M&A transactions.

"Excluding these one-off items, the net profit for Q1 2019 has increased by AED118 million. This is mainly due to increase in gain on fair valuation of investments which is quite encouraging as it indicates improving market conditions.”

Kalban added: “The company’s outlook for the remaining of 2019 is positive with various real estate developments nearing completion and expected recovery of the manufacturing and contracting segment which will further be boosted by the acquisition of Globalpharma.”

Dubai Investments in February announced the acquisition of an additional 66 percent stake in Globalpharma.

Following the acquisition, made through Dubai Investments Industries, the pharmaceuticals company will now be a wholly owned subsidiary of Dubai Investments.

Established in 1998 and headquartered in Dubai Investments Park, Globalpharma manufactures and markets pharmaceutical products in more than 14 countries across the GCC, Middle East and neighbouring markets.