Dubai Investments Q1 net profit falls 64 pct

Dubai Investments Q1 net profit falls 64 pct

Q1 net profit down 64 pct; Investment losses widened to 57.4 mln dirhams in Q1; Co eyeing 1.2 bln dirham loan for expansion

May 2, 2011 10:16 by Reuters

UAE conglomerate Dubai Investments reported a sharply lower first-quarter net profit on Monday as operating profit weighed on earnings and losses on investments widened. The company reported a net profit of 101.1 million dirhams ($27.53 million) for the period to March 31, compared with 277.7 million dirhams in the prior-year, it said in a statement to the bourse.

Net cash from operating activities fell to 19.1 million dirhams from 59.4 million dirhams in the first quarter in 2010, the statement said. The loss on net cash in investing activities widened to 57.4 million dirhams from a loss of 38.3 million dirhams.

Dubai Investments, in which the emirate’s sovereign wealth fund Investment Corporation of Dubai (ICD) has a stake, is involved in sectors from real estate to manufacturing.

In April, it said it was in talks with banks for a 1.2 billion dirham loan as it looks to expand operations.

The company also said earlier that it plans to sell 30 percent of private equity unit Masharie through an IPO before June 30. Earnings were released ahead of the Dubai market open, but shares in Dubai Investments are up 12.6 percent higher this year. (Reporting by Rachna Uppal; Editing by Dinesh Nair)