representing a 466% increase over 2013 results
01/02/2015 08:22 AST
ABU DHABI, 1 February 2015: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), has reported a preliminary net profit of AED 1.73 billion for 2014, a 466 percent year-on-year increase from AED 306.4 million in 2013, and the highest earnings in the company’s history. For the fourth quarter of 2014, Waha Capital recorded a net profit of AED 142.1 million, up from AED 75.6 million a year earlier -- an increase of 88 percent.
The company, which was established in 1997, benefited from a strong performance across its principal investments, with AerCap Holdings NV (“AerCap”) providing the largest contribution to earnings growth. Other investments also performed well, with the company’s capital markets division delivering above-market returns from its credit and equities portfolios.
The preliminary results were announced following a Board meeting in Abu Dhabi chaired by His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital, where the board recommended a cash dividend of AED 0.25 per share be paid to shareholders, representing a 100 percent increase over dividends paid in 2013.
Commenting on the company’s record results, His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital, said: “Building on our strong performances in recent years, Waha Capital has delivered an exceptional year, in which we have produced a 51 percent return on equity. We are reaping the benefits of taking a patient, long-term view on our investments, while focusing firmly on value creation and prudent financial management. The company is in excellent shape to take advantage of the attractive investment opportunities we see emerging in the MENA region.”
He added: “Waha Capital is dedicated to delivering shareholder value, and this year’s excellent results are a testament to that. The company is now primed to drive forward its strategy for growth.”
Waha Capital’s assets increased by 89 percent to AED 9.8 billion as of 31 December 2014, from AED 5.2 billion a year earlier. This increase reflects the performance by investments and company activity, including the shareholder value that was unlocked by AerCap’s acquisition of International Lease Finance Corporation (ILFC) in May, and Waha Capital’s subsequent hedging and financing transactions on AerCap shares. In addition, the company deployed funds in new acquisitions within the healthcare and energy sectors as well as in the capital markets business.
In the second half of 2014, Waha Capital divested three million shares and entered into hedging and financing transactions on its entire remaining stake in Aercap -- approximately 26.8 million shares -- with the aim to reduce risk and lower its cost of capital. The transactions effectively locked in the value of Waha Capital’s stake in AerCap at an average minimum price of $40.04 per share, and up to an average cap price of $57.23 per share, subject to certain adjustments. They also generated aggregated funding of just over AED 4 billion for Waha Capital to partially repay existing debt and fund new investments.
Salem Rashid Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital said: “In 2014, Waha Capital not only benefited from its diversified portfolio of high quality investments, but also worked hard to ensure a robust platform for future growth. The hedging and financing transactions on AerCap shares not only reduced risk in our portfolio, they provided approximately AED 4 billion of additional funding, and helped reduce our leverage ratio to to 28.2 percent as of 31 December 2014, from 37.9 percent a year earlier. With an impressive track record of investment and value creation, we are confident that we can make significant progress in the coming years as we build up our platforms in high potential areas such as healthcare, energy and infrastructure.”
In May of 2014, Waha Capital established a new unit
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