(MENAFN- Gulf Times) Robust core earnings, supported by fast
expansion of rents and dividends as well as containment of operating expenses, helped Ezdan Holding Group report a 20% jump in net profit to QR858.17mn in the first six months of this year.
Investment earnings indicators will continue to rise, despite the crisis experienced by the global economy caused by the political and economic changes like the drop in global oil prices, among others, and its impact on the region's economies, as well as the local one, Ezdan chairman Sheikh Dr Khalid bin Thani Abdullah al-Thani said.
"The domestic market is perfectly standing by the strong government support and heavy implementation of major national projects," he added.
Rental income grew 17% to QR749.81mn and dividend income
from 'available-for-sale' investments by 10% to QR183.85mn, according to its financial statement filed with the Qatar Stock Exchange.
The company showed an 11% expansion in operating profit to QR909.73mn despite a 16% fall in net gain on sale of 'available-for-sale' financial assets to QR81.92mn and a 39% in other income to QR28mn.
Moreover, its operating expenses were largely flat at QR133.85mn.
The group developed an integrated plan to revitalise and upgrade operational efficiency of many of its projects, which helped achieve quick positive returns, according to Sheikh Khalid.
"These results, which reflect an increase in net profits of the group, came as a result of an upsurge in operating income primarily," Ezdan group chief executive Ali al-Obaidli said.
The group is currently working on the launch of a number of mega projects which will contribute to the achievement of further income rates, he said, highlighting Ezdan Mall Wukair's official opening in October; Ezdan Mall Al Wakrah to be opened by next December and Ezdan Palace Hotel on Al Shamal Road by early next year.
The company's share of results of 'equity-accounted investees' rose 45% to QR196.33mn and gain on revaluation of investment properties jumped about five-fold to QR18.62mn and other income by 35% to QR12.79mn. The company had also booked QR4.96mn as gain on sale of investment properties held for sale.
General and administrative expenses increased 23% to QR116.01mn and finance costs by 3% to QR163.59mn.
Total assets were valued at QR44.6bn, comprising investment of QR34.45bn in properties, 'available-for-sale' financial assets worth QR5.89bn and investments of QR3.12bn in 'equity-accounted investees'.
Total equity stood at QR30.3bn on a capital base of QR26.52bn and earnings-per-share was QR0.32 at the end of June 30, 2015.
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