Peak earnings season

EMAAR-

Real estate developer Emaar Properties’ net income attributable to shareholders rose to AED 5.3 bn in 1H 2024, according to its website. Meanwhile, revenues rose 17% y-o-y to AED 14.4 bn during the six-month period, according to its earnings release (pdf).

The developer saw its sales leap 56% y-o-y, reaching a record AED 31.5 bn during the first six months of 2024, with 2Q 2024 sales outperforming sales in the first quarter. The record sales have bolstered Emaar’s revenue from its backlog of property sales to AED 90.1 bn, up 43% y-o-y — set to sustain Emaar over the next 4-5 years.

REMEMBER- In real estate, sales ≠ revenues. With off-plan sales dominating the industry, most real estate companies book a sale when you sign a contract to buy a home. But they only record (some or all) of the value of the unit it sold you when it (a) delivers the unit to you or (b) hits a percentage completion on a total project. In most cases, then, revenues are composed of sales from past periods, while sales in a given quarter will be recognized as revenues in the future when units are completed or delivered.

How Emaar’s subsidiaries performed: Emaar Development booked AED 7.3 bn in revenues in 2Q 2024, while Emaar Malls saw its revenues reach AED 2.8 bn in 1H 2024. Emaar’s hospitality, leisure, and entertainment divisions boosted its revenues 9% y-o-y, contributing AED 1.8 bn, in the first half of the year.

SPINNEYS-

Spinneys logs first post-IPO financial results: Spinneys’ net income grew 17.7% y-o-y to AED 71.8 mn in 2Q 2024, according to the company’s second financial statements (pdf) filed with the DFM. The company booked AED 782.8 mn in revenues, up 9% y-o-y.

On a six-month basis, Spinneys’ bottom line grew 15% y-o-y to AED 146.5 mn in 1H 2024. The company’s revenues grew 10% y-o-y to AED 1.6 bn on the back of a 9.8% increase in same store sales, according to a separate earnings release (pdf). The growth in revenues was bolstered by the opening of four new locations in Dubai — Al Khawaneej, Sobha, The Kitchen by Spinneys in Dubai Mall — and its first store in Riyadh, Saudi Arabia.

First post-IPO interim dividends: The company’s board approved interim dividends of AED 103 mn for 1H 2024, set to be distributed this month.

REMEMBER- Spinneys debuted on DFM in May: Al Seer Group listed 900 mn of its shares — equivalent to a 25% stake — in Spinneys on the DFM earlier in May, raising AED 1.38 bn after receiving more than AED 71 bn in orders.

ADNOC DISTRIBUTION-

Abu Dhabi National Oil Company (Adnoc) Distribution reported a 12.9% y-o-y increase in net income attributable to shareholders to AED 622.8 mn in 2Q 2024, according to its financials (pdf). The company’s revenues rose 8% y-o-y to AED 8.78 bn, driven by increased fuel volumes and higher selling prices on the back of rising crude oil prices and growth in non-fuel retail business, Adnoc Distribution said in its earnings reports (pdf).

On a six-month basis, Adnoc Distribution saw its net income attributable to shareholders rise 7% y-o-y to AED 1.17 bn, attributable to the increased field volumes and selling prices and the consolidation of TotalEnergies Marketing Egypt. The fuel retailer booked AED 17.5 bn in revenues, increasing 8.7% y-o-y in 1H 2024.

Dividends: Adnoc Distribution proposed dividends of USD 350 mn for 1H 2024, set to be distributed in October 2024, the company said in its earnings release (pdf).

Looking ahead, the fuel retailer plans to invest between USD 200-300 mn in CAPEX during 2024, with 70% of the sum to be allocated towards “growth-focused initiatives.”

ETIHAD AIRWAYS-

Etihad Airways saw its income after tax rise 48% y-o-y to AED 851 mn in 1H 2024, according to an earnings release. The Abu Dhabi-based carrier’s revenue increased 21% y-o-y to AED 11.7 bn during the same period, fueled by a 24% y-o-y increase in passenger revenues due to the expansion of its network, the statement added. The UAE carrier also saw a 10% y-o-y increase in cargo revenue fueled by increased demand and cargo fleet capacity expansion. The carrier saw a 38% y-o-y increase in passenger numbers to 8.7 mn during the period.

More fleet expansion ahead: Etihad Airways added 16 more aircrafts to its 92 fleet, including three A321neos, and is expecting to add more than 20 new generation aircraft to its fleet in the next 18 months that aim to reduce emissions and increase efficiency by 20% compared to previous models.

Etihad has been on a roll: Etihad Airways saw its income after tax rise 791% y-o-y to a record AED 525 mn in 1Q 2024, and booked AED 5.7 bn in revenues for the quarter, up 21% y-o-y. Etihad’s parent company ADQ is potentially going after both a traditional IPO and direct listing on 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 Stanely as joint bookrunners as advisors back in May.

The airline has met most regulatory requirements, though a date has not yet been set, CEO Antonaldo Neves told Sky News Arabia. Neves stated that while the majority of IPO criteria have been fulfilled, the timing will hinge on shareholder approval. Neves also mentioned plans to expand its global network by adding 10 new destinations and aims to triple passenger numbers compared to 1H.

RAK PROPERTIES-

Ras Al Khaimah developer RAK Properties’ net income rose 9% y-o-y to AED 47.6 mn in 2Q 2024 as the developer saw robust demand and successful project launches during the first half of the year, according to its quarterly financials (pdf) and earnings release (pdf). Meanwhile, revenues rose 26.7% y-o-y to AED 320.6 mn during the quarter.

In 1H 2024, net income rose 1.9% y-o-y to AED 89.1 mn, while revenues grew 19.3% y-o-y to AED 610.4 mn.

Looking ahead: The developer is forecasting further revenue growth on the back of a solid pipeline of developments and support from the Ras Al Khaimah government, which increased its stake in the company to 34%, up from 5%, earlier this year.

DEWA-

Dubai Electricity and Water Authority (Dewa) posted a 3.5% y-o-y decline in net income to AED 1.91 bn in 2Q 2024, according to the authority’s financials (pdf). The company’s revenues rose 7.8% to AED 7.86 bn.

The company’s 1H saw a similar result: The company’s net income dropped 6.6% y-o-y to AED 2.55 bn in 1H 2024 due to the impact of the corporate tax and higher appreciation, while revenues rose 7.3% to 13.66 bn over the same period. Revenue growth came on the back of and increase in demand for electricity, water and cooling services, the authority said.

What they said: “The demand for power and water in 2024 grew by 6.7% and 4.3% respectively reflecting continuous growth in Dubai,” Dewa CEO Saeed Mohammed Al Tayer said in a separate statement (pdf).

DUBAI INVESTMENTS-

Dubai Investments’ net income rose 22% y-o-y to AED 289.1 mn 2Q 2024, according to the company’s financial statements (pdf). The company recorded AED 1.24 bn in revenues during the quarter, up 22% y-o-y. On a six-month basis, Dubai Investments reported a 27% y-o-y drop in net income to AED 401.5 mn in 1H 2024, on revenues of AED 2.03 bn (relatively flat y-o-y).

ARAMEX-

Logistics outfit Aramex’s net income fell 83% y-o-y to AED 3.1 mn in 2Q 2024, according to its financial statements (pdf). In a separate earnings release (pdf), Aramex attributed the y-o-y decrease to seasonal challenges in 2Q — including adverse weather conditions and public holidays — resulting in slower business activity and fewer operational working days. The seasonal impact is estimated at AED 45 mn in lost revenues and AED 8.8 mn in lost net income. The company recorded AED 1.5 bn in revenues, up 8% y-o-y.

On a six-month basis, Aramex saw its bottom line rise 17% y-o-y to AED 49.8 mn. The company’s top line also increased 8% during the same period to AED 3.04 bn, buoyed primarily by new clients and improved sales, especially in international and domestic express operations.

Looking ahead: “Aramex is poised to sustain its growth momentum across key product lines in the second half of the year,” the release said, adding that the company will continue to make strategic investments in infrastructure and talent to broaden its customer base. Full-year revenues are projected to grow at 8-9% in 2024.

DANA GAS-

Sharjah’s Dana Gas saw its net income increase 2.5% y-o-y to AED 124 mn in 2Q 2024, according to the company’s financials (pdf). The company also penciled in a 2.3% y-o-y increase in its net revenue to AED 267 mn. Improved margins for the period mitigated a 7% revenue decline caused by lower realized prices, Dana Gas said in a separate earnings release (pdf).

For the first half of 2024, Dana Gas saw its net income fall 13.5% y-o-y to AED 263 mn on the back of lower realized prices at its Khor Mor gas field in Iraq’s Kurdistan region, as well as lower production output in Egypt primarily due to natural field declines. The energy company’s revenues reached AED 557 mn, marking a 5% y-o-y decline.

Production levels in Iraq rose 3%, fueled by higher gas volumes for local power plans amidst growing demand. A new payment mechanism with the local Iraqi government has improved receivables, with regular payments since November 2023 reducing past dues, according to Dana Gas CEO Richard Hall.

Dana Gas and its partners are finalizing a new completion date for the KM250 project following the drone attack on the Khor Mor gas field in late April and will update the market on the revised timeline and costs “soon.”

UNIKAI FOODS-

Dubai-based Unikai Foods reported a bottom line of AED 10.2 mn in 2Q 2024, up 27.6% y-o-y, according to the company’s unaudited financials (pdf). The company’s revenues increased 14.8% y-o-y to AED 109.4 mn. On a 1H basis, the company’s net income increased 71% y-o-y to AED 14.6 mn, while revenues rose 18.5% y-o-y to AED 205.9 mn.

UNION COOP-

Union Coop’s net income after tax increased 21% y-o-y in 1H 2024 to AED 163.1 mn, according to its financial statements (pdf). The company booked revenues of AED 962.3 mn, up 5% y-o-y during the same period.