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Sorouh earnings tumbles 75.5 pct in Q2 |
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Wednesday July 22 2009
Sorouh Real Estate posted a second-quarter net profit of 150.98
million dirhams ($41.08 million), down 75.5 percent from the
year-earlier period, driving shares lower.
Abu Dhabi's
second-largest property developer by market value said it earned net
profit of 281.42 million dirhams in the first half of the year,
compared with 977.61 million dirhams a year earlier, the firm said in a
statement on Wednesday.
Sorouh reported a net profit of 687.04 million dirhams in the second quarter of 2008.
Revenues
for the half of 2009 fell to 1.3 billion dirhams, compared to 1.69
billion dirhams in 2008. Second quarter revenues were down to 978
million dirhams from 1.1 billion dirhams in the same period last year.
The
company said results were in line with its expectations and reflected
its strategy to focus on "cash conservation" and "management of
operating costs".
The company said its Abu Dhabi developments
remained on schedule and expected to see a "gradual quarter-on-quarter
improvement" on the back of unit sales and rental income from a number
of its projects.
Developers across the United Arab Emirates have
suffered the impact of the global financial crisis which put an end to
a six-year construction boom.
The downturn resulted in the
cancellation of hundreds of billions of dollars worth of projects in
the recent months while valuations and sales fell.
Sorouh's first quarter results fell by more than half compared to last year.
Source: Maktoob
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