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PARKIN-
Parkin reports solid post-IPO earnings: Car parking space manager Parkin reported a 5% y-o-y increase in its bottom line to AED 103.7 mn in 1Q 2024, according to its earnings release (pdf). Parkin’s revenues grew 8% y-o-y, reaching AED 215 mn during the quarter, buoyed by growth in its public parking revenue and seasonal card and permit issuances. The company also attributed higher developer demand as a secondary growth driver.
The heavy rainfall could dampen Parkin’s 2Q earnings: The recent DFM entrant estimates it has foregone some AED 4 mn in revenues due to last month’s “unprecedented weather,” which affected the broader transport network. The foregone revenues will impact its 2Q earnings.
REFRESHER- Dubai’s public parking operator listed on the DFM in March, marking the bourse’s first public offering in 2024 and raising some AED 1.57 bn.
Looking ahead: Parkin plans to construct more multi-storey parking facilities — accounting for 2% of revenues — to provide motorists with alternative routes during unstable weather conditions,” Parkin CEO Mohamed Al Ali and Parkin CFO Khattab Omar Abu Qaoud told Khaleej Times yesterday. Collaborations with Dubai’s Roads and Transport Authority (RTA) and private developers, and the Dubai Electricity and Water Authority to set up more EV charging stations across the emirate, are also in the firm’s expansion plans, in addition to value-added services such as providing parking with a car wash.
“We are studying more options to expand our platform,” Al Ali said. “For sure, there will be recruitment plans to adapt with our needs and fulfill manpower requirements,” Al Ali added, hinting that the firm plans to onboard more staff.
DUBAI ELECTRICITY AND WATER AUTHORITY-
Dewa’s bottom line fell 14% in 1Q: Dubai Electricity and Water Authority posted a 14% y-o-y decline in net income to AED 650.8 mn in 1Q 2024, according to the authority’s financial statements (pdf).
Dewa’s revenue climbed 6.5% y-o-y, increasing to AED 5.8 bn during the quarter. The authority attributed the solid revenues to a growth in electricity, water and cooling services demand, Dewa said in its earnings release (pdf).
What they said: “The high demand growth of 6.4% in electricity and 5.9% in water have contributed to exceptional operating results in this quarter… reflected in 11.6% increase in operating income of the group,” Dewa CEO Saeed Mohammed Al Tayer said.
ADNOC DISTRIBUTION-
Abu Dhabi National Oil Company (Adnoc) subsidiary Adnoc Distribution’s net income dipped 2.6% y-o-y to AED 527.6 mn in 1Q 2024, according to its financial statements (pdf). The distribution unit’s income was dented by the introduction of corporate tax during the quarter. Excluding the tax effects, the company reported a net income of AED 607 mn, up 13% y-o-y. according to its earnings release (pdf). Revenue climbed 9.4% y-o-y to AED 8.7 bn during the quarter.
Expansion in the pipeline: “We are well positioned to achieve our operational objectives for 2028, aiming to expand the Adnoc Distribution network to 1k stations, increase the number of fast and super-fast EV charging points to at least 500, grow our non-fuel transactions by 50%, and increase the number of convenience stores by 25%,” Adnoc Distribution CEO Bader Saeed Al Lamki said.
AI deployment will help Adnoc mitigate sales loss: AI integration is a crucial part of the company’s strategy and is producing measurable outcomes, Al Lamki added. The company’s Fuel Demand AI Model uses predictive analytics to enhance fuel delivery efficiency throughout its network and is estimated to help avoid potential lost sales of more than USD 27 mn over five years.
DRAKE & SCULL-
Dubai-based contractor Drake & Scull narrowed its net losses to AED 46 mn in 1Q 2024, compared to AED 119 mn in net losses in the same quarter last year, it said in its earnings release (pdf). The losses came as a result of the company’s restructuring plans, which involved a net financing cost of AED 39 mn during the quarter, the company said, adding that the costs will be reversed once restructuring is complete, as per a settlement plan approved by the Dubai court. The contractor saw revenues increase 55% y-o-y to AED 31 mn in revenues, according to its financials (pdf).
Background: The Dubai Financial Market greenlit the relisting of Drake and Scull after the firm committed to a restructuring plan involving a capital increase in March. The contractor is now working on raising some AED 600 mn, with the subscription period ending today, in a bid to bring its total issued capital to around AED 3.4 bn and cover debts, payouts, government fees, and potential acquisitions. The DFM approved its restructuring plan — which will write off 90% of its debt — back in November 2023. The construction company was suspended from trading in November 2018 on the back of excessive financial losses and reporting violations.
What they said: “We have full trust in all our existing shareholders to subscribe in the new capital raise and the new funds will be utilized in improving the efficiency and effectiveness of the working capital necessary to win new profitable projects in UAE and overseas countries in the future,” CFO Fadi Baraki said.
ETIHAD AIRWAYS-
Etihad publishes 1Q financials as it gears up for IPO: Etihad Airways saw its income after tax rise 791% y-o-y to a record AED 526 mn in 1Q 2024, according to the carrier’s earnings release. Etihad booked AED 5.7 bn in revenues for the quarter, up 21% y-o-y, driven by 41% increase in passenger numbers.
What they said: “We are pleased to report a strong start to the financial year 2024, with our first quarter earnings equivalent to our total net income for the entire financial year 2023 as we continue our margin expansion journey. We have maintained our resilience and our focus on customer service and growth while continuing to improve our commitment to efficiency,” Etihad CEO Antonoaldo Neves said.
Background- Etihad parent company ADQ is eyeing potentially going after both a traditional IPO and direct listing on the ADX at the end of the year, with the offering expected to raise as much as USD 1 bn. The airline tapped Abu Dhabi Commercial Bank, Bank of America, BNP Paribas, and Morgan Stanley as joint bookrunners as advisors last week.
RAK PROPERTIES-
Rak Properties posts lower income, higher revenues in 1Q 2024: Ras Al Khaimah (RAK) Properties net income fell 7% y-o-y to AED 41.45 mn in 1Q 2024, according to the developer’s earnings report (pdf). RAK Properties booked AED 289 mn in revenues, increasing 12% y-o-y during the quarter, driven by strong sales across the developer’s property segments.
FUJAIRAH BUILDING INDUSTRIES-
ADX-listed Fujairah Building Industries (FBI)’s net income rose 50.2% y-o-y to AED 6.3 mn during 1Q 2024, according to the construction company’s financial statements (pdf). The increase came as revenues increased 12.1% y-o-y to AED 51.0 mn during the quarter.
ABU DHABI NATIONAL INS. COMPANY-
Abu Dhabi National Ins. Company (Adnic)’s bottom line remained relatively flat in 1Q 2024, inching up 1.3% y-o-y to AED 100.9 mn, according to the company’s consolidated financial statements (pdf). Total ins. revenue stood at AED 1.56 bn during the quarter, up 55.1% y-o-y.
AJMAN BANK-
Ajman Bank’s bottom line more than doubled to a record AED 107.4 mn, up 118% y-o-y in 1Q 2024, according to its financial statements (pdf). The growth was driven by a 7% y-o-y increase in its net operating income to AED 400 mn, as well as the bank’s focus on “customer base, enhancing the credit quality, risk management and focus on recoveries,” the lender said in its earnings release (pdf).
GENERAL HOLDING CORPORATION-
Abu Dhabi’s General Holding Corporation’s — more commonly known as Senaat — bottom line inched down 3.6% y-o-y to AED 1.06 bn in 2023, according to the company’s financial statements (pdf). The industrial holding company’s revenues remained relatively flat at AED 13.47 bn, down a marginal 0.4% y-o-y from the previous year.
AL MAZAYA HOLDING-
DFM-listed Kuwaiti firm Al Mazaya Holding’s net income jumped nearly seven-fold to KWD 1.5 mn (AED 17.4 mn) during 1Q 2024, according to its financials (pdf). The company turned in KWD 3.7 mn (AED 44.3 mn) in revenues for the quarter, down 6.1% from the previous year.
REFRESHER- The firm completed its merger with its partially-owned real estate subsidiary First Dubai in March, resulting in an 8% increase in capital for Al Mazaya to KWD 52.6 mn (AED 628.2 mn), distributed over some 525.6 mn shares. Al Mazaya issued and allocated 40.8 mn new shares – priced at 100 fils per share – to shareholders in First Dubai as part of the merger.
