Abu Dhabi-based Oasis International Leasing has returned to profit, despite facing obstacles such as the Iraq war and SARS outbreak, earning a net profit of 3.4 million Emirati dirhams ($925,673) in the first half of 2003, compared with the net loss of Dh 8.5 million for the whole of 2002.
In addition, Oasis Leasing added Dh 119 million to its Risk Adjusted Lease Book (RALB) – the risk adjusted present value of contracted future lease revenues. At the end of 2002 the RALB stood at Dh 831 million.
In the five years since its incorporation, Oasis Leasing has invested its original equity of Dh 500 million in assets totaling over Dh 2.1 million, generating Dh 884 million in revenue and Dh 77 million in profits, of which Dh 40 million has been returned to shareholders in dividends.
Oasis Leasing's Chairman Mohammed Saif Al-Mazrouei said the company had bounced back into the black despite the aviation industry experiencing one of the most difficult periods in its history. However, he said tentative signs of recovery were emerging.
"Passenger volumes are up in those geographic areas hardest hit in the recent past, such as North America and Asia, and it is apparent that recent events have not reduced the desire or willingness of people to travel for business or pleasure," said Al-Mazrouei.
Al-Mazrouei added that the company's strategy continues to be to grow the company in a structured way, building up a portfolio of assets, and to diversify into other sectors such as shipping and infrastructure.
"The profit of Dh 3.4 million compares well with the loss of Dh 8.5 million for the whole of 2002,” said Oasis Leasing's CEO, Gordon Dixon. “But it is also worth focusing on the improved net cash flow, from operational activities, of Dh 62.1 million, demonstrating how our assets continue to generate revenue at the low point of the business cycle," hr added.
Oasis International Leasing Company was formed in 1997. Its principal business is to identify, structure, manage and invest in high value leasing transactions. The objective is to deliver sustainable shareholder investment returns. The original Oasis Leasing concept, aimed at promoting the creation of new financial services' clusters in the United Arab Emirates (UAE) economy, was developed by the Offsets Department of the UAE Government.
Leasing is viewed as an attractive and sustainable economic sector to develop. In addition to establishing a profitable international leasing company, Oasis Leasing also seeks to promote leasing in the UAE and to provide a catalyst for the expansion of the financial services sector. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
