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Sorouh’s Net Profit for 9 months Jumps 125 pc

DUBAI — Sorouh Real Estate has reported an increase of 125 per cent in net profit for the nine months ended 30 September 2008 to Dh1.738 billion comparing with Dh773 million in previous year.

Revenues jumped from Dh1.486 billion in the first 9-months of 2007 to Dh3.191 billion in the January-September period in 2008.

The company reported a growth of 132 per cent in total assets from Dh7.2 billion as at 31 December 2007 to Dh16.7 billion at September 30 2008. Net assets of the company increased from Dh4.463 billion as at December31 2007 to Dh5.832 billion as at September 30 2008.

Liquid funds increased from Dh1.4 billion as at December 31 2007 to Dh7.7 billion as at 30 September 2008, as a result of cash collected on receivables from the sale of land plots, unit sales and rental income.

The net profit represents earnings per share of 73 fils in the 9-months period of 2008 over 31 fils per share in September 2007 and was generated from operating activities, with no asset revaluations.

Despite the current global economic situation, the strong fundamentals of the Abu Dhabi market and the company’s strong balance sheet and liquidity meant confidence of the future outlook.

Abubaker Seddiq Al Khouri, managing director of Sorouh said: was bullish on for the remainder of the year, as business and all other indicators continue to look positive.

“We remain on course to meet investors’ expectations and we are confident that we are well positioned positively for 2009,” he said.

Mounir Haidar, Sorouh’s Chief Executive Officer said: “The strong demand in the Abu Dhabi real estate market means that it is comparatively well-cushioned against the global economic situation.”

This, he said coupled with the company’s strong balance sheet and cash resources, can take a positive view of the coming period.

On the deliveries of major projects under construction, the Chief Executive Officer reported satisfactory progress against targets on all projects.

“Construction is progressing well at SHAMS Abu Dhabi on Reem Island, with the first phase on track for completion in Q1 2010, and we have just broken ground,” he said.