Emaar posts 2008 first half profits of $900.9 mn

July 17th, 2008 - 7:58 pm ICT by IANS  

Dubai, July 17 (IANS) Leading United Arab Emirates (UAE)-based real estate developer Emaar Properties has announced its 2008 first-half net profits stood at 3.315 billion dirhams ($900.9 million), a marginal rise from the 3.279 billion dirhams ($891.1 million) recorded in the same period last year. Net profits in the second quarter (April to June) of the year grew 7 percent over the second quarter 2007 net profit of 1.558 billion ($0.424 billion) and is similar to the first quarter 2008 profits, an Emaar statement here Thursday said.

“Globally, the first half of 2008 was marked by recessionary trends and mounting inflation,” Mohamed Ali Alabbar, Emaar chairman, said in a statement.

Stating that for a property developer of Emaar’s geographic outreach, the period also meant greater exposure to the market challenges of rising prices and reduced consumer spending, he said: “However, Emaar’s results for the six months prove the robustness of our long-term strategic Vision 2010 to focus our growth efforts in the emerging markets of the region and Asia.”

Revenue for the first six months of the year is at the same level as half year 2007 revenue at 8.203 billion ($2.233 billion).

The revenue for second-quarter 2008 (April to June) is 4.240 billion ($1.154billion), 7 percent more than the first quarter 2008 revenue of 3.961 billion dirhams ($1.078 billion).

Earnings per share (EPS) for the first six months of the year were 0.54 dirhams ($0.14) with the annualized EPS for 2008 being 1.08 dirhams (0.29), the company said, adding that domestic property sales was the prime driver of these figures.

Alabbar said India and other international markets showed strong performance.

“Markets like India, Morocco, Saudi Arabia, Egypt, Syria and Turkey not only yielded strong domestic sales but also attracted sizeable international sales - especially at roadshows held in Dubai,” he said.

The company’s Indian joint venture, Emaar MGF, has committed $12 billion investment in India for residential and commercial projects.

It is building a series of integrated master-planned townships across a number of Indian cities like Hyderabad, Chennai, Gurgaon and Mohali.

The company is also constructing the 2010 New Delhi Commonwealth Games village.

“…We have proved ourselves as a partner in the progress of the 36 active markets where we are based, by creating job opportunities, strengthening the growth of ancillary industries and bringing in a new dynamic to the property sector,” Alabbar said.

According to the company, Emaar’s UAE projects also continued to contribute strongly to first-half 2008 revenues.

This included the launch of the company’s new residential and commercial space in Downtown Burj Dubai area, where the world’s tallest building is set to come up, and Asmaran gaining overwhelming investor response, it said.

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