Dubai Investment Q3 profits slumps 88 percent
Co says Q3 net profit 24.9 mln dirhams; Q3 loss of 19.4 million dirhams on fair value of investments
November 3, 2011 5:33 by p.deleon
Dubai Investments reported an 88 percent drop in its third-quarter net profit on Thursday, with the UAE conglomerate impacted by losses on some of its investments.
The company, in which sovereign fund Investment Corporation of Dubai (ICD)owns an 11.5-percent stake, made a third-quarter net profit of 24.9 million dirhams ($6.8 million), compared with a net profit of 213.61 million dirhams in the same three months of 2010.
The results were below the expectations of the company’s chief executive Khalid bin Kalban, who said last month that he saw a profit of 30 million dirhams.
The company made a loss of 19.4 million dirhams on fair value of investments in the quarter, compared with a gain of nearly 37 million dirhams in the corresponding period in 2010.
Dubai Investments is involved in several sectors ranging from real estate to manufacturing. Its manufacturing business faced setbacks due to regional unrest in key markets like Libya, Syria and Yemen.
The company said last month it had secured 700 million dirhams of a planned 1.2 billion dirham loan.
Shares of Dubai Investments ended Thursday 2.6 percent higher, with earnings announced after the close of trading. ($1 = 3.673 UAE Dirhams) (Reporting by Praveen Menon; Editing by David French)