Dubai developer Damac Properties reports 20% fall in third-quarter profit

Damac’s third-quarter revenue was up 31 percent to Dh2.291 billion from Dh1.748 billion last year. (Courtesy Damac)
Updated 18 October 2017

Dubai developer Damac Properties reports 20% fall in third-quarter profit

DUBAI: Dubai developer Damac Properties on Wednesday reported a 20.24 percent fall in third-quarter profit, its third consecutive earnings decline, caused by a steep rise in cost of sales.
Profit for the three-month stretch to September was at Dh719.34 million versus Dh901.96 million during year-ago period, while cost of sales rose a hefty 69.87 percent to Dh1.339 billion from Dh788.56 million, according Damac’s unaudited financial report submitted to the Dubai stock exchange.
Revenue was up 31 percent to Dh2.291 billion from Dh1.748 billion last year.
“Dubai’s property market has been steadily solidifying in 2017, with increasing sales transactions and robust fundamentals, and our medium to long term outlook remains positive. We have a strong value proposition and continue to appeal to a broader spectrum of buyers with a range of products at attractive price points,” Hussain Sajwani, Chairman of Damac Properties, said in a statement.
Damac said it had partnered with the Roberto Cavalli Group for the third-quarter launch of the Just Cavalli project to feature the designer’s signature style in villas at Dubai flagship development AKOYA Oxygen.
The company also reported that it delivered a total of 852 units from its international developments, including the two-tower Damac Esclusiva project in Saudi Arabia and the three-tower The Heights project in Jordan, Damac’s first development in the said country.
“Construction continues on circa 6,300 villas at AKOYA Oxygen, and the 18-hole championship golf course continues to take shape,” Sajwani said.
“The community’s amenities, including wellbeing facilities and retail outlets, in addition to hospitality and food and beverage elements, are in various stages of planning and progress.”


Oil prices surge after attacks hit Saudi output

Updated 16 September 2019

Oil prices surge after attacks hit Saudi output

  • The Houthi attacks hit two Aramco sites and effectively shut down six percent of the global oil supply
  • President Donald Trump said Sunday the US was ‘locked and loaded’ to respond to the attacks

HONG KONG: Oil prices saw a record surge Monday after attacks on two Saudi facilities slashed output in the world’s top producer by half, fueling fresh geopolitical fears as Donald Trump blamed Iran and raised the possibility of a military strike on the country.
Brent futures surged $12 in the first few minutes of business — the most in dollar terms since they were launched in 1988 and representing a jump of nearly 20 percent — while WTI jumped more than $8, or 15 percent.
Both contracts pared the gains but were both still more than 10 percent up.
The attack by Tehran-backed Houthi militia in neighboring Yemen, where a Saudi-led coalition is bogged down in a five-year war, hit two sites owned by state-run giant Aramco and effectively shut down six percent of the global oil supply.
Trump said Sunday the US was “locked and loaded” to respond to the attack, while Secretary of State Mike Pompeo said: “The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression.”
Tehran denies the accusations but the news revived fears of a conflict in the tinderbox Middle East after a series of attacks on oil tankers earlier this year that were also blamed on Iran.
“Tensions in the Middle East are rising quickly, meaning this story will continue to reverberate this week even after the knee-jerk panic in oil markets this morning,” said Jeffrey Halley, senior market analyst at OANDA.
Trump authorized the release of US supplies from its Strategic Petroleum Reserve, while Aramco said more than half of the five million barrels of production lost will be restored by tomorrow.
But the strikes raise concerns about the security of supplies from the world’s biggest producer.
Oil prices had dropped last week after news that Trump had fired his anti-Iran hawkish national security adviser John Bolton, which was seen as paving the way for an easing of tensions in the region.
“One thing we can say with confidence is that if part of the reason for last week’s fall in oil and improvement in geopolitical risk sentiment was the news of John Bolton’s sacking ... and thoughts this was a precursor to some form of rapprochement between Trump and Iran, then it is no longer valid,” said Ray Attrill at National Australia Bank.