The Board of Directors proposed to reduce the capital to offset the accumulated losses
Eshraq's net profit improved by 167% for the first half
Jassim Al Seddiqi: “We will continue to be committed to creating value for our shareholders, by improving operational efficiencies and strengthening our balance sheet.”
Eshraq Investments "Eshraq" or "the Company", the Abu Dhabi-based investment company listed on the Abu Dhabi Securities Exchange, announced its financial results for the first half of 2021. The company's net profit for this period amounted to 17.95 million dirhams, an increase of 167.25% compared to In the first half of 2020.
Despite the ongoing challenges of the “Covid-19” pandemic, “Eshraq” recorded an operating income of 10.20 million dirhams in the first half of this year, which is an increase of 9.58% over the same period last year.
The company also achieved gains of 15.36 million dirhams from its investments, especially in the financial and technical sectors.
At the same time, the leasing and hospitality business returned to pre-pandemic levels, with the company's assets in the Dubai International Financial Center and "Nuran Marina" achieving occupancy rates of 97% and 96%, respectively.
In terms of real estate development projects, "Marina Rise" - the company's first mixed-use project on Al Reem Island, received a construction completion certificate from the Abu Dhabi Municipality and "Eshraq" began renting its units.
The completion of this project is an important step towards monetizing the company's land portfolio and improving its net profit.
The Board of Directors believes that the company is in a good position to reduce the capital to achieve a positive net reserve by amortizing the accumulated losses.
The proposed capital reduction plan will not have any impact on Eshraq's net equity.
Eshraq Chairman Jassim Al Seddiqi said: “We are very pleased with the great progress we have made at various levels, whether in terms of increasing our profitability and investments through a diversification strategy or completing the first mixed-use real estate development project on schedule.
During the second half of the year, we will continue to be committed to creating value for our shareholders by improving operational efficiencies and strengthening our balance sheet.”
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