Sorouh Real Estate Company, the Abu Dhabi-based real estate developer, said on Wednesday that its net profit for 2011 after provisions and impairments was Dh383.3 million compared with Dh16.2 million for 2010.
Revenues for the full year were Dh3.8 billion, compared with Dh1.2 billion a year earlier, driven by the handover of Sun and Sky, which generated Dh2.2 billion, construction income from national housing projects, revenue from subsidiary companies, a significant land transaction and rental income from investment properties, Sorouh said in a statement.
"This mix of revenue contributors has helped strengthen the earnings profile of the business and create a more sustainable business for the future," it added.
Sorouh's stock surged on the earnings news in morning trade. At 10:10 A.M. on the Abu Dhabi Securities Exchange, Sorouh's stock was up 0.99 per cent at Dh1.02.
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For the financial quarter ended December, the company's net profit for the quarter amounted to Dh98.1 million, compared to a net loss of Dh198.6 million for the same quarter a year earlier.
"We are in a pretty strong cash position with Dh1.8 billion in cash. We are expecting good cash collections in 2012," Sorouh's Chief Financial Officer Richard Amos said during a conference call with reporters.
Sorouh's Board of Directors have recommended a full year cash dividend of 5 fils per share, which is subject to shareholder approval at the company's annual general meeting.
Sorouh held net assets amounting to Dh6.6 billion at the end of 2011.