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GHITHA HOLDING-
International Holding Company (IHC) retail subsidiary Ghitha Holding saw its net income rise more than 2000% y-o-y to AED 106.8 mn in 2Q 2024, according to the company’s financials (pdf). Revenues from contracts inched up 1.5% y-o-y to AED 1.19 bn.
In 1H 2024, the company turned to the black with AED 2.8 bn in net income in 1H 2024, after netting AED 104 mn in losses in the same period last year. Ghitha’s revenues from contracts for the period reached AED 2.45 bn, marking an 18% y-o-y growth. Ghitha’s total assets increased 33% since December 2023 to reach AED 9.4 bn, according to the IHC-subsidiary’s earnings release (pdf).
The company also acquired Dubai-based dairy producer Marmum Dairy Farm this quarter, it said, without disclosing the exact value or size of the stake it acquired. The acquisition follows an earlier acquisition this year of Al Ain Farms for Livestock Production for AED 61 mn.
PHOENIX GROUP-
Phoenix Group reported a 141% y-o-y increase in net income to USD 56.1 mn in 2Q 2024, on the back of growth in the company’s self-mining services, in addition to gains on investments in digital assets, according to Phoenix’s earnings release (pdf). The ADX-listed bitcoin mining company saw its revenues slump 35% y-o-y to hit USD 51 mn, due to changes in market dynamics after the halving, which slashed mining rewards by 50% and resulted in fewer machines sold.
Uh, Enterprise, what is the halving? “The halving” is a programmed event (architected by BTC’s pseudonymous creator, Satoshi Nakamoto) that cuts the reward for miners in half, roughly every four years, thus controlling supply and making it hard to hit 21 mn coins in circulation. It took place this past April.
It’s a short-term hit, according to Phoenix: “Though halving is a negative event for miners in the short term, it has proven to be a catalyst for the next bull run over medium to long term hence helping efficient miners while eliminating inefficient ones,” the earnings release said.
In 1H 2024, the crypto mining firm reported a net income of USD 122.28 mn, up 154% y-o-y, according to its financials (pdf). The company’s revenues came in at USD 120.13 mn during the first six months of the year, down 25% y-o-y.
Looking ahead: Phoenix will “continue to invest in modern highly efficient mining technologies and sites to gain access to competitive energy prices,” with a focus on tokenization, the earnings release said. The company’s incremental capacity is expected to sit at 400-500 MW.
DEYAAR DEVELOPMENT-
Dubai’s Deyaar Development recorded an 86% y-o-y increase in net income to AED 115.7 mn in 2Q 2024, according to its financials (pdf). The real estate developer’s revenues reached AED 336.6 mn, up 6% y-o-y. The rise in earnings can be credited to what the company referred to as “well-thought-out strategic directions and business model,” in a separate earnings release (pdf).
On a six-month basis, Deyaar recorded a 59% y-o-y increase in net income after tax to AED 188.7 mn in 1H 2024. Without the impact of the corporate tax, net income reached AED 202.6 mn. The developer’s revenues reached AED 664.4 mn, up 6% y-o-y.
EMIRATES STALLIONS GROUP
IHC subsidiary and construction and real estate firm Emirates Stallions Group (ESG) saw its net income fall 89% y-o-y to AED 62 mn in 2Q 2024, according to its financials (pdf). Revenues increased 270% y-o-y to AED 336.2 mn.
On a six-month basis, the company reported a 78% y-o-y decrease in net income to AED 131 mn, according to its earnings release (pdf). The company saw its revenues increase 140% to AED 639.6 mn.
RAK INS.
RAK Ins. in the red: Ras Al Khaimah’s National Ins. Company, RAK Ins., reported AED 1.7 mn in losses in 2Q 2024, according to its financials (pdf). Revenues increased 4.5% y-o-y to AED 121.5 mn. In 1H 2024, its net income increased more than 1000% to AED 1.9 mn.
The ins. firm reported AED 27 mn worth of accumulated losses for 1H 2024, according to a separate statement (pdf). The company incurred these losses primarily due to a significant financial downturn by the end of 2022
BANK OF SHARJAH
The Bank of Sharjah saw its net income increase to AED 171 mn in 1H 2024, after incurring losses worth AED 144 mn during the same period last year, according to the lender’s earnings release (pdf). This 233% surge, excluding a one-time impairment charge from delinking its Lebanese subsidiary, is driven by a 108% y-o-y increase in net interest income, stringent credit underwriting, and reduced operating costs. The lender’s total operating income also rose 33% y-o-y to reach AED 300 mn.
APEX INVESTMENT-
Apex Investment in the black: Ras Al Khaimah Cement ’s Abu Dhabi-based Apex Investment reported a net income of AED 18.74 mn in 2Q 2024, compared to the AED 8.63 mn net loss the company posted in the same period last year, according to the company’s consolidated financial statements (pdf). The ADX-listed company’s revenues also rose 49% y-o-y to AED 229.91 mn during the quarter.
On a six-month basis, the company recorded a bottom line of AED 23.01 mn in 1H 2024, after booking net losses of AED 198.8 mn in the same period last year. Apex’s revenues rose 41% y-o-y to AED 425.2 mn during the same period.
AL SEER MARINE-
Maritime player Al Seer Marine reported AED 966.8 mn in losses in 2Q 2024, compared to a net income of AED 38 mn in the same period last year, according to its financials (pdf). Revenues rose 1% y-o-y to AED 316.1 mn.
On a six-month basis, the company recorded a net loss of AED 1.68 bn in 1H 2024, 124% steeper than the previous year’s AED 750 mn loss, according to the company’s management report (pdf). This came as direct costs increased as a percentage of revenue to 92%. The International Holding Company subsidiary recorded a 2.8% y-o-y increase in revenues to AED 580 mn during 1H.
