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Emaar’s net income rose 70% y-o-y to AED 11.6 bn in 2023 on the back of booming real estate demand and tourism growth, according to an earnings release (pdf). The real estate giant’s revenues stood at AED 26.7 bn during the year, up 7% y-o-y, while property sales rose 15% y-o-y to AED 40.3 bn. The robust growth in sales signals “a promising outlook for revenue recognition in the upcoming years,” the company said.
SOUND SMART- 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.
Dewa reports record revenues:Dubai Electricity and Water Authority (Dewa) saw its revenues climb 7% y-o-y, to AED 29.9 bn, logging its highest-ever net revenues amid increased demand, according to the company’s preliminary financial results (pdf). The utility provider’s net income inched down 1.4% y-o-y in 2023 to AED 7.9 bn.
On a 4Q basis: Dewa’s net income jumped 14.6% y-o-y in 4Q 2023 to AED 1.8 bn, while revenues increased during the quarter to AED 7.1 bn, up 5.5% y-o-y.
Dewa is paying out AED 3.1 bn in dividends for its 2H 2023 earnings, expected to be distributed in April.
Aramex’s net income fell 22% y-o-y in 2023 to AED 129 mn due to higher financing costs on the back of an “acquisition loan taken in Q4 2022, and to a lesser extent, to the currency translation impact,” the company said in a DFM filing (pdf). The company posted a 4% y-o-y decline in its revenues for the year, easing to AED 5.69 bn.
On a quarterly basis Aramex’s net income more than doubled in 4Q 2023, soaring 127% y-o-y to AED 77 mn in 4Q 2023. However, the company posted a marginal decline in its revenues for the same period, inching down 1% y-o-y to AED 1.52 bn.
=Toll operatorSalik’s net income fell 17.8% y-o-y to AED 1.1 bn in 2023, according to its preliminary financial results (pdf). The company’s revenues increased 11.4% y-o-y to AED 2.1 bn in 2023, primarily due to heightened toll usage resulting from improved economic activity and increased traffic.
Take the net income drop with a grain of salt: Salik’s separation from the Road and Transport Authority in 2022 ahead of its IPO distorts annual profitability comparisons due to differences in organizational structure and new costs, the company said in the statement.
Sharjah’sDana Gas saw its net income fall 12% y-o-y in 2023 to AED 586 mn on the back of lower oil and gas prices, it said in its earnings release (pdf). The decline was partly offset by record production in the Kurdistan region of Iraq and cost-saving measures, the company said. Revenues also saw a 20% y-o-y decline to AED 1.55 bn.
WATCH THIS SPACE- The natural gas company expects the Egyptian parliament to approve a consolidated concession agreement in 1Q 2024, which aims to extend the operational lifespan of the company’s Egyptian assets and will pave the way for an additional investment of around USD 100 mn in Egypt.
Looking ahead: “Our focus remains on developing our world class assets in the KRI and maximizing the value of our Egypt assets, post ratification by the Egyptian Parliament,” Dana Gas CEO Richard Hall said, adding that “enhancing our liquidity and reinstating dividends are key objectives for the company.”
Abu Dhabi Aviation (ADA) Group’s net income rose 19.5% y-o-y to AED 493.2 mn in 2023 amid “market volatility” and “disruption to global distribution channels,” according to the company’s financial results (pdf). The company reported a revenue of AED 2.62 bn in 2023, up 29% y-o-y, despite the Russia-Ukraine conflict impacting global supply chains, according to an earrings release (pdf).The company is expanding its aviation operations locally and globally, increasing its fleet to meet market demand.
United Arab Bank’s (UAB) net income rose 65% y-o-y to AED 255 mn in 2023 on the back of a 15% y-o-y increase in operating income, tighter cost management, and lower credit losses, according to the bank’s earnings release (pdf). Operating income came in at AED 576.5 mn, according to the lender’s financial statements (pdf).
UAB saw its total assets increase 25% y-o-y in 2023 to AED 17.6 bn on the back of a 23% y-o-y “strong growth in loans, advances and Islamic financing, as well as [a 31% y-o-y growth] in the investments portfolio,” according to the filing.
Ras Al Khaimah (RAK) Ceramics’ net income dipped 5.7% y-o-y to AED 320 mn in 2023, according to the company’s annual earnings release (pdf). Excluding a one-off gain in 2022, the company’s bottom line rose 3.7% y-o-y. RAK Ceramics saw its net revenues dip 1.7% to AED 3.45 bn in 2023 on the back of “market volatility and continued macro-economic challenges across core markets except the UAE,” the company said.
A look at 4Q: The company’s bottom line rose 4.8% y-o-y to AED 81.8 mn in 4Q 2023, excluding the on-off, whereas including the one-off makes for a jump of 25.3%. Meanwhile its revenues stood at AED 866 mn, falling 3.8% y-o-y during the period.
