Dubai Investments reports net profit of AED 1.56 billion for the year ended 31 December 2008
Dubai Investments PJSC (“DI”) reported its results for the year ended 31 December 2008 (‘the year”), with consolidated total income of AED 4.41 billion, which is 29 per cent more than the total income of AED 3.41 billion for the year ended 31 December 2007 (“previous year”). The net profit for the year was AED 1.56 billion, 4% more than the net profit of AED 1.50 billion for the previous year.
DI’s profit for the year from its core business activities increased to AED 1,116 million from AED 925 million for the previous year, representing a growth of 21%. However, DI’s results for the year were impacted due to significant write-downs of AED 368 million, owing to mark-to-market requirements in its investment portfolio of shares, bonds and structured products. In spite of this, DI managed to post an overall increase of 4% in net profit for the year. DI has adopted a strategy of maintaining high liquidity with strong cash flows generated from its business activities.
Total Assets (“Assets”) as at 31 December 2008 are AED 14.11 billion, representing a growth of 38% over the Assets of AED 10.24 billion at 31 December 2007. Net Worth as at 31 December 2008 is AED 7.23 billion, a growth of 46 per cent over the Net Worth of AED 4.96 billion at 31 December 2007. This was achieved due to substantial net profits realized and increase in share capital on rights issue.
The return on average Net Worth achieved for the year is 26% and return on average Share Capital is 58%. The earnings per share (EPS) for the year is AED 0.48, while the return on average Assets achieved for the year is 13%.
“Dubai Investments achieved its best ever annual results in spite of extremely challenging economic and financial conditions,” said Khalid Bin Kalban, Managing Director and CEO of Dubai Investments. “The fundamentals of our business remain strong due to the diversified investment base, and we are well placed to take advantage of potential opportunities in the coming months due to our strong liquidity position.”
