Peak earnings season

Healthcare giant PureHealth’s net income fell 78% y-o-y to AED 965 mn in 2023 on the back of a decline in covid-related business, according to the company’s earnings release (pdf). Excluding covid business in 2022 earnings, normalized net income grew 9x in 2023.

The company’s revenues rose 31% y-o-y to AED 16.4 bn during the year, driven by growth in volume of non-covid-19 patients, higher ins. retention and premiums, and an uptick in procurement and supply chain activities.

ICYMI: PureHealth made its debut on the ADX, raising AED 3.62 bn in a heavily oversubscribed IPO in December 2023. The IPO proceeds will be used for “general corporate purposes,” the company said, and to support future expansion, potentially including acquisitions of hospital groups and healthcare assets in the Middle East, the Americas, Europe and the Far East.

EMIRATES STEEL ARKAN-

Emirates Steel Arkan reported AED 601.9 mn in 2023 net income,up 18% y-o-y on the back of increased domestic and foreign sales, according to the company’s earnings release (pdf). The steel and building materials manufacturer saw its revenues fall nearly 6% y-o-y to AED 8.9 bn despite “a challenging and volatile global economic landscape and its impact on commodity prices,” according to the company’s unaudited preliminary results (pdf).

The company saw its net income rise 69% y-o-y to AED 215 mn in 4Q 2023,while revenues increased 4% y-o-y to AED 2.4 bn during the quarter. The company attributes its growth during the period to higher volumes of rebar steel sales in the domestic market.

Looking ahead: The company plans to boost output and surpass production targets, while reducing costs, it said in the earnings release.

RAK PROPERTIES-

RAK Properties’ net income rose 555.5% to AED 201.8 mn in 2023, according to its earnings release (pdf). The real estate company’s revenues reached just over AED 1 bn, up 146.2% y-o-y, while sales increased 448% y-o-y to AED 2.8 bn.

Residential + hospitality projects both had a good year: The company experienced high demand for developments in Ras Al Khaimah and Abu Dhabi. Residential projects saw successful launches and sell-outs, along with positive reception for new projects. Hospitality projects such as the Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA also performed well in both occupancy and financial results.

DU-

du had a good year: Dubai-based telecoms operator Emirates Integrated Telecommunications, commonly known as du, reported a 36.8% y-o-y increase in its net income to AED 1.7 bn in 2023, according to an earnings release (pdf). The company’s revenues climbed 6.9% y-o-y to AED 13.6 bn, driven by demand for mobile services and growth in demand for its postpaid and fixed services.

For the year’s final quarter: The company’s 4Q bottom line increased 38.5% y-o-y to AED 396 mn, while its revenues rose by 7.3% y-o-y to AED 3.5 mn over the same period.

du’s board of directors is recommending dividends of 34 fils per share, up 41.7% from the previous year’s dividend payout.

ALPHA DHABI-

Alpha Dhabi reports record earnings: Investment holding company Alpha Dhabi saw its net income jump 25% y-o-y to a record AED 13.3 bn in 2023, according to the firm’s earnings release (pdf). Alpha Dhabi’s revenues stood at AED 45.5 bn, up 14% y-o-y during the year.

The company’s expanding portfolio drove the performance, with the firm’s holdings in the industrial sector contributing 37% of total revenues, the real estate sector contributing 23% and the construction sector contributing 19%.

Looking ahead: “As we advance into 2024, we are on a strong footing to enhance our core investment activities through strategic partnerships and acquisitions. Our joint ventures with ADNOC Drilling and Mubadala is a testament to this ambition, as we will deploy up to AED2.1 bn into oil field services and AED1.7 bn into global credit [ventures],” Alpha Dhabi CEO Hamad Al Ameri said.

WAHA CAPITAL-

Waha Capital posts 83% income growth: ADX-listed investment manager Waha Capital — the parent company of Waha Investments and Waha Land — saw its net income soar 83% y-o-y to AED 820 mn in 2023, according to the company’s earnings release (pdf). The company’s net revenues grew 70% y-o-y to AED 1.2 bn over the year.

In 4Q 2023, Waha Capital booked AED 218 mn in net income, up 39% y-o-y, while its revenues almost doubled to AED 543 mn, posting a 94% y-o-y growth.

OTHER EARNINGS NEWS-

#1-Sharjah-based Invest Bank widened its net losses by 77% y-o-y to AED 1 bn in 2023, due to impairment charges exceeding AED 1 bn, according to the company’s preliminary results (pdf). The ADX-listed bank’s revenue reached AED 238 mn, up from to AED 45 mn in 2022, mainly attributed to improved net interest income and reduced valuation losses on repossessed properties.

#2- Dubai Investments reported a 28.3% y-o-y drop in net income to AED 1.2 bn in 2023, on revenues of AED 4.2 bn (down 1.9% y-o-y), according to the company’s preliminary results (pdf). Excluding the one-off gain from selling its 50% share of DFM joint venture Emicool to global investment firm Actis in July 2022, would have made Dubai Investments’ 2023 bottom line “significantly higher” y-o-y.

#3-Abu Dhabi National Ins. Company (ADNIC)’s bottom line grew 12.2% y-o-y to AED 401.2 mn in 2023,owing to “strategic partnerships” and acquisitions, including that of Allianz Saudi Fransi Cooperative Ins. Company, according to the company’s consolidated financial statements (pdf). Total ins. revenues remained relatively flat in 2023 at AED 4.64 bn, compared to AED 4.66 bn in the previous year.

#4-Dubai Refreshment Company saw its net income grow 242.4% y-o-y to AED361.8 mn,“driven by a strong local business volume growth of 9%” and an AED 220 mn one-off gain from the sale of a manufacturing site, according to the company’s preliminary results (pdf). The company’s revenues increased nearly 7% y-o-y during the year to AED 803.1 mn.

#5-The National Marine Dredging Company saw its net income climb 65% y-o-y to AED 2.15 bn in 2023,according to the company’s financials (pdf). The company’s revenues from customer contracts increased 56.4% during the same period to AED 16.71 bn. The board proposed full-year dividend payouts of AED 618.8 mn for 2023.

#6- Dubai Islamic Ins. and Reins. (Aman) posted a net loss of AED 10.2 mn in 2023, compared with AED 1 mn in 2022 net income, according to its preliminary financials (pdf). Revenues increased 262% y-o-y to AED 235.5 mn.

#7-Emirates Reem Investments also recorded a net loss of AED 3.7 mn in 2023, compared with net income of AED 25.4 mn the year before, according to its preliminary results (pdf). Revenues grew 71% to AED 54.6 mn.

#8- Watania International Holding turned to the black in 2023,recording a bottom line ofAED 13.8 mn, compared with a loss of AED 53.1 mn in the previous year, according to the company’s earnings release (pdf). Watania’s Takaful revenues increased 12% y-o-y to AED 922 mn due to “significant improvements and corrective measures” taken, including strict underwriting discipline, the company said.

#9- Sharjah Cement and Industrial Development reported a net income of AED 1.1 mn in 2023, up from a net loss of AED 39.6 mn in the previous year, according to the company’s preliminary results (pdf). The turnaround is attributed to production cost reductions, lower energy costs and the use of alternative fuels, the company said. Revenues remained flat during the period at AED 634.5 mn.

#10- The National Corporation for Tourism and Hotels (NCTH)’s net income rose 6% y-o-y to AED 68.1 mn in 2023, according to the company’s earnings release (pdf). The company’s revenues fell 6.2% to 669.2 mn.

#11- Al Dhafra Ins. Company saw its bottom line fall 51% y-o-y in 2023 to AED 23 mn, according to the company’s preliminary results (pdf). The company’s revenues were down 3% y-o-y to AED 317 mn.

#12-Al Fujairah National Ins. Company narrowed its net losses to AED 8 mn in 2023, down from AED 20.9 mn in 2022, according to an ADX filing (pdf). The company’s ins. revenues climbed 22% y-o-y to AED 282 mn during the same period.

#13-Sharjah Ins. Company’s bottom line fell 52% y-o-y to AED 16.2 mn,and turned in AED 21.5 mn in ins. revenues, down 6% y-o-y in 2023, according to its preliminary earnings (pdf).

#14-Budget carrier Air Arabia saw its bottom line increase 27% y-o-y to AED 1.5bn in 2023on the back of robust operating capacity and an increase in routes, according to an earnings release. The airline’s topline rose 14% during the period to AED 6 bn.

#15- Emirates Investment Bank turned to the black with a bottom line of AED 107.5 mn in 2023, after posting nearly AED 24k in net losses in 2022, according to its preliminary financials (pdf). The investment bank’s revenues also rose 61% y-o-y to AED 220.6 mn.