Abu Dhabi-based International Holding Company (IHC) today (August 5) reported a sharp increase in its profit for the first half, supported by higher revenue across several business segments and gains from its investment portfolio.
Profit after tax for the six months ended June 30 rose to AED26.2 billion ($7.13 billion), compared with AED8.9 billion a year earlier. Revenue increased 34.5% year-on-year to AED64.9 billion.
Gross profit rose 41% to AED16.8 billion, while profit before tax climbed 180.2% to AED28 billion. Earnings per share increased to AED8.21 from the year-earlier period.
Announcing the H1 results, IHC said its revenue growth was mainly driven by its energy and mining, hospitality and leisure, real estate and construction, financial services and technology businesses.
Real estate and construction remained IHC's largest business by revenue, contributing AED20.9 billion, up 10.4% from a year earlier. Marine and dredging revenue rose 4.5% to AED14.7 billion, while energy and mining generated AED12.3 billion, supported by growth in minerals, metals and hydrocarbon trading, the company said.
Hospitality and leisure revenue more than doubled to AED5.2 billion, financial services revenue increased 62.8% to AED3 billion, food revenue rose 26.9% to AED3.4 billion and technology revenue gained 35.2% to AED1.9 billion.
IHC said first-half profit also benefited from investment income within its financial services business, reflecting returns from its investment holding activities and portfolio management.
Total assets increased 9.6% to AED469.7 billion at the end of June, while total equity rose 7% to AED268.3 billion. Cash and bank balances stood at AED72.9 billion.
On its solid performance, CEO Syed Basar Shueb said: "Our first-half results reflect the sustained efforts of our teams and portfolio companies, as well as investment decisions made over a number of years. We are encouraged by the growth achieved across several of our operating sectors and by the continued development of IHC’s international investment platform."
"The increase in profit also reflects the nature of IHC’s business model as an investment holding company, where returns are generated through a combination of operating performance, disciplined capital allocation and active portfolio management," he stated.
Total debt increased to AED99.8 billion as the company raised financing to support its investment programme, including two $1 billion hybrid note issuances. During the first half, IHC invested about AED14 billion in associates, joint ventures, financial assets and real estate, it added.-TradeArabia News Service