Waha Capital, an Abu Dhabi-based investment and advisory firm which counts Mubadala Investment Company as a shareholder, said on Tuesday its fourth quarter net profit surged more than 700 per cent on back of gains from asset disposals.
The Abu Dhabi-listed firm said its profit for the three months to the end of December reached Dh158.1 million from Dh19.5m a year earlier. . Gains from sale of Waha's stake in two companies were the main drivers of the surge in profitability, it said.
"We have achieved good financial results in spite of the challenges facing the global economy and the capital markets, alongside the geopolitical factors which the region is experiencing," Hussain Al Nowais, chairman of Waha Capital said. "The company's financial indicators reflect the success of its strategy to diversify assets, income resources and its investment portfolio."
Waha's 2017 full-year net profit attributable to shareholders rose 4.6 per cent to Dh425.9m from Dh407m in 2016, the firm said in a statement.
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Waha completed the divestment of its 93 per cent shareholding in Proficiency Healthcare Diagnostics (PHD) to Al Borg Medical Laboratories, the largest chain of private laboratories in the Arabian Gulf region. The transaction, first announced in May, carries the sale price of approximately Dh184m for 100 per cent of PHD. Waha in December said it will book an accounting gain of about Dh94m for the transaction.
Waha has also agreed to sell its stake in UAE-based National Petroleum Services to Nasdaq-listed National Energy Services Reunited in a cash and shares transaction. The value-creating transaction frees capital for the company and will give Waha a liquid stake in National Energy, which is well-positioned for growth in oil and gas sector, it said.
During 2017, Waha diversified its principal investments portfolio by acquiring a significant minority stake for $55m in Channel VAS, a fintech company with an addressable base of over 500 million mobile subscribers.
The company said it was prudently managing its financial resources. It has a strong balance sheet which enables it to move ahead with the next phase of expansion while pursuing more investment opportunities.
