Waha Capital has reported a net profit of AED1.6 billion for the first nine months of 2014, a near six fold increase on the same period in 2013, AED231 million. This was largely due to a one-off gain recorded in the second quarter as the company unlocked part of the value of its stake in AerCap.
For the third quarter of 2014, the company recorded a net profit of AED301.2 million, up from AED 107.1 million a year earlier, driven by strong contributions from the company’s stakes in AerCap Holdings NV and Dunia Finance LLC.
In the third quarter, AerCap again made a strong contribution to Waha Capital’s earnings, as the New York-listed company recorded a 117.6 percent rise in earnings per share from a year earlier, due to its acquisition in May of International Lease Finance Corporation (ILFC). The acquisition has created the world’s largest independent aircraft leasing company.
During the quarter, Waha Capital also entered into a hedging and financing transaction, as part of the company’s strategy to de-risk and to lower its cost of capital. This transaction involved hedging half of the company’s exposure to AerCap and raising approximately AED2.1 billion (approximately US$575 million), which will be used to partially repay existing debt and to fund new investment opportunities.
Commenting on the latest results, Hussain Jasim Al Nowais, Chairman of Waha Capital, said, "In recent years, we have delivered very strong return on equity, and so far this year Waha Capital’s performance has been exceptional. We are well positioned for growth and remain fully focused on creating further shareholder value and carrying out a prudent investment strategy. Thanks to an extremely strong financial base, the company is well placed to fully participate in, and benefit from, the robust economic growth in this region." Salem Rashid Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital, said, "The company has significant capital at its disposal to fund future investments. Waha Capital has demonstrated a strong track record in pursuing attractive investment opportunities and expertise in adding value. We intend to develop our platforms in the high-potential areas of energy and healthcare in the coming years, building scale organically and through select acquisitions." With the company reporting record earnings in the year to date, Waha Capital announced in September its intention to implement a share buy-back programme for up to 10 percent of outstanding shares, to allow its shareholders to directly benefit from the company’s continued profit generation. The programme was approved by the UAE Securities and Commodities Authority on 19th October 2014.
Waha Capital’s assets stood at AED9.3 billion as of the end of the third quarter, compared with AED5.2 billion as at 31st December 2013. This was mainly due to the proceeds resulting from the hedging and financing transaction on half of the company’s shares in Aercap, followed by strong performance of Waha Capital’s portfolio companies and increase in public capital markets investments.