Dubai Holding unit’s profit jumps
DHCOG’s 2013 earnings surge 177% to Dh3.3 billion, revenues hit Dh11.6 billion
Dubai Holding said on Sunday its flagship business unit has nearly trebled 2013 net profit on the back of 27 per cent jump in revenues.
Net profits of Dubai Holding Commercial Operations Group (DHCOG) surged by 177 per cent to Dh3.3 billion as total revenues hit Dh11.6 billion, the Dubai-based global investment holding company said in a statement. As DHCOG, which runs four businesses operating in 24 countries, continued to grow, delivering strong top and bottom line results, its total assets reached Dh116 billion.
DHCOG said it had serviced all public and bank debts and repaid them upon maturity, negotiated settlements with contractors and made timely payments, and continued development of infrastructure and construction, to hand over completed units to its customers. This has resulted in reduction of these liabilities from Dh36.7 billion in 2009 to Dh19.2 billion in 2013.
DHCOG has made remarkable progress in managing its public and bank debts and has achieved an eight per cent annual reduction from Dh15.2 billion in 2009 to Dh10.9 billion in 2013. The group’s debt-to-equity ratio dropped from 1.04 in 2009 to 0.6 in 2013, well within the optimal range and industry norms.
UAE Minister for Cabinet Affairs Mohammad Abdulla Al Gergawi, who is also the chairman of Dubai Holding, said with Dubai’s economy enjoying renewed business confidence across many of its core market segments, Dubai Holding’s businesses are playing an important role in driving that market sentiment as well as benefitting from it.
“The group remains fully committed to delivering long-term economic growth and the development of key industries in line with Dubai’s diversification strategy,” he said.
Ahmad bin Byat, chief executive officer of Dubai Holding, said over the past few years, DHCOG has focussed its efforts to ensure that we are able to meet our financial obligations when due.
“Our tough strategic decisions have paid off and in 2013 DHCOG tripled net profits, with its core commercial operations generating improved recurring and sustainable revenues. The group continues to play a significant role in the development of Dubai’s cityscape bringing high quality residential, commercial and tourism infrastructure meeting the demands of a fast growing city,” said Byat.
He said the group’s hospitality arm is one of the very few homegrown brands that have achieved significant success internationally. “At the same time, it is also encouraging to see that international businesses continue to choose DHCOG’s platform of business parks to establish their base in the region. We will continue to deliver pivotal projects to address new market opportunities and ensure Dubai remains the Middle East’s primary business and tourism hub.”
DHCOG said it concluded the year with a healthy cash balance of Dh3.9 billion. The group’s consistently solid operating performance, strong cash flows, bond and debt repayments led Moody’s Investors Service to upgrade and assign a positive outlook to all of DHCOG’s ratings.