News Archive

NREC records KD 8.2 million net profit for first six months

29 - August - 2014

NREC’s financial results for nine months of 2014

NREC (NRE) announced its six months consolidated financial results for the period ending 30th June 2014. Net Profit reached KD 8.2M and Earning per Share (EPS) 9.58 fils; an increase of 22.4% compared to 2013. Consolidated Group Income stands at KD 9.9 million and EBITDA is KD 10.7 million.

“2013 was a very good year for NREC, and I am happy to show that we are continuing to improve on that in 2014. We are seeing sustainable growth in our rental portfolio as well as increased revenue from our sales focused developments, it is a good balanced result,” said NREC’s CEO, Sam Sidiqi.

Update on Developments and Investments

In Abu Dhabi, NREC has announced the participation of RTKL as lead architect for The Reem Mall and has announced that M squared is leading the leasing efforts. Both are leaders in their fields with respect to shopping centers and are contributing greatly to the advancement of this project.

In Egypt NREC is achieving strong sales with more than EGP 600M of sales in the first half of 2014. The Egyptian consumers are very impressed with the “day one community” that NREC is offering in its Grand Heights development in 6th of October City near Cairo.

NREC’s investment in Libya faces headwinds due to geopolitical challenges. In Libya performance continues to be strong, but is under threat of renters leaving the country due to security reasons. However, the company doesn’t foresee any immediate adverse impact on revenue contribution.

In Aqaba, NREC received its first cash dividend from its subsidiary ANREPCO, and sees continued good operating performance with options to expand.

Overview of financial performance for the first half of 2014

  • NREC net profit reached KD 8.2 million, a 22.4% improvement from 2013.
  • EPS improved from 7.83 fils to 9.58 fils.
  • Consolidated group income reached KD 9.9 million an improvement of 116.6% over the KD 4.6 million achieved in 2013.
  • NREC’s EBITDA increased by 18.4% to reach KD 10.7 million.
  • Total assets increased by KD 10 million to reach KD 532.1 million in June 2014.
  • Bank debt was stable at KD 177.4 million.
  • Shareholders’ equity increased by KD 7.1 million to reach KD 206.3 million in 2014.
Outlook for the full year 2014

“NREC’s half-year results show good improvements over last year. Our view is that NREC should continue to perform better during the remainder of 2014 in comparison with 2013.

We continue to focus our efforts to increase cash flows from existing rental properties, to manage risk across our portfolio and to drive our developments systematically to deliver good return on investment for our shareholders,” said Mr. Sidiqi.