Listed UAE property companies report 30% rise in combined first-quarter profits

Aldar Properties announced a 4 percent rise in its first-quarter profit to 668 million dirhams, from 641 million dirhams, in what the emirate’s largest developer described as a “strong start to the year.” (Courtesy Aldar)
Updated 04 June 2018
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Listed UAE property companies report 30% rise in combined first-quarter profits

DUBAI: The aggregate profits of the UAE’s 13 publicly listed property companies rose by almost 30 percent in the first quarter, state-run news agency WAM reported.
The real estate companies’ profits surged to 4.35 billion dirhams ($1.18 billion), from 3.36 billion dirhams a year ago, during the period ended March, which beat “expectations of industry analysts” and led the “market in terms of dividend distributions, thanks to a consistently growing demand,” the report added.
At the Dubai Financial Market, the eight listed property companies reported profits worth 3.65 billion dirhams during the first three months of the year, 36.2 percent higher compared with the 2.68 billion dirhams in the same period of 2017. The data was consolidated from the financial figures released by the companies.
Emaar Properties, the UAE’s biggest listed property developer, was the best performer with a 1.5-billion-dirham profit for the first quarter as topline numbers were boosted by higher contributions from its shopping malls and hospitality businesses.
The Dubai developer has launched a few projects this year: Dubai Creek Harbour, Downtown Dubai, Dubai Hills Estate, Emaar South, Emaar Beachfront, Arabian Ranches and Dubai Marina.
Emaar Development, the real estate arm of Emaar, earlier said its net profit increased by about 62 percent to 819 million dirhams during the three months to end-March, from 506 million dirhams a year earlier.
Over at the Abu Dhabi Securities Exchange, the combined income of the five listed property companies rose 3.8 percent to 704 million dirhams during the first quarter from 678 million dirhams a year ago.
Aldar Properties announced a 4 percent rise in its first-quarter profit to 668 million dirhams, from 641 million dirhams, in what the emirate’s largest developer described as a “strong start to the year.”
“Development sales for the quarter were 681 million dirhams, driven by sales of existing developments under construction, with over 80 percent of all projects under development sold as at March 31,” Aldar said in a statement.
The developer also launched Reflection at the end of the quarter, a boutique development on Reem Island which consists of 374 units.
Aldar and Emaar entered into a joint venture last March to develop 30 billion dirhams worth of pipeline projects, initially focusing on Emaar Beach Front in Dubai and Saadiyat Grove at Saadiyat Island in Abu Dhabi.


Oil prices fall as US crude output hits record

Updated 46 min 28 sec ago
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Oil prices fall as US crude output hits record

  • US crude oil production reached 12 million barrels per day for the first time last week
  • As output surges, US oil stocks are also rising

SINGAPORE: Oil prices fell on Friday after the United States reported its crude output hit a record 12 million barrels per day (bpd), undermining efforts by Middle East-dominated producer club OPEC to withhold supply and tighten global markets.
International Brent crude futures were at $66.87 per barrel at 0326 GMT, down 20 cents, or 0.3 percent, from their last close.
US West Texas Intermediate (WTI) crude oil futures were at $56.84 per barrel, down 12 cents, or 0.2 percent, from their last settlement.
US crude oil production reached 12 million bpd for the first time last week, the Energy Information Administration (EIA) said on Thursday in a weekly report.
That means US crude output has soared by almost 2.5 million bpd since the start of 2018, and by a whopping 5 million bpd since 2013. America is the only country to ever reach 12 million bpd of production.
As output surges, US oil stocks are also rising.
US commercial crude oil inventories rose by 3.7 million barrels to 454.5 million barrels in the week ended Feb. 15, the EIA said.
Analysts say US output will rise further and that oil firms will export more oil to sell off surplus stocks.
“We see total US crude production hitting 13 million bpd by year-end, with 2019 averaging 12.5 million bpd,” US bank Citi said following the release of the EIA report.
Of that, the bank said, “we could be seeing some weeks with 4.6 million bpd of gross crude exports by end-year, adding to this week’s new record” of 3.6 million bpd.
Friday’s dips at least temporarily halted a rally that pushed crude prices this week to their highest for 2019 so far amid the supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).
OPEC and some non-affiliated producers such as Russia agreed late last year to cut output by 1.2 million bpd to prevent a large supply overhang from growing.
Another recent price driver has been US sanctions against oil exporters Iran and Venezuela.