Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, reported a sharp rise in second-quarter net income as it continues to expand business through strategic acquisitions.
Net income attributable to shareholders of the company for the three months to the end of June climbed to Dh731.12 million ($199m), from Dh28.45m a year earlier, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
The company's quarterly net income after tax climbed to Dh1.62bn, from Dh27.75m in the second quarter of 2020.
The rise in profitability reflects “the impact of the transformative change during the year”, Alpha Dhabi said.
Alpha Dhabi shares climbed almost 2 per cent to Dh27 on more than 54 million shares trade at 11:40am. Its parent IHC advanced 2.9 per cent to Dh134.80 while Abu Dhabi's benchmark general index rose 0.74 per cent.
Net profit after tax in the first half of the year rose to Dh1.72bn, from Dh104m recorded at the end of the first quarter of the last year.
Alpha Dhabi's revenue in the first half of the year grew by more than 200 per cent to Dh5.49bn from the same period a year ago. Total assets of the company leapt to Dh34.25bn in the first six months, from Dh5.39bn from a year earlier.
The company became a subsidiary of Abu Dhabi-listed IHC after it bought a 45 per cent stake in the group in March for an undisclosed sum. It shares began to trade on the ADX in June and helped the bourse's market value to surge past Dh1 trillion.
Alpha Dhabi has been on an acquisition spree this year, with its strategic investments contributing Dh28.86bn to its asset growth in the first half of the year.
Among the investment deals is the Dh1.7bn acquisition of the entire share capital of Murban Energy, which has investments in the hospitality, facility management services and oil and gas services sectors.
Murban's assets include St Regis at Saadiyat, Al Wathba Luxury Collection Desert Resorts and the Le Noir Cafe brand.
In June, it acquired two more assets from Murban, which brought the combined value of its asset purchases to Dh2.5bn.
During the first half, Alpha Dhabi also acquired a 70 per cent stake in Mawarid Holding Investment, which is engaged in Sharia-compliant financing and investing activities through Aafaq Islamic Finance.
It also took a 31.5 per cent share in Pure Health Medical Supplies, which offers hospital management services, lab management services and residence visa medical tests.
The company bought a 65.11 per cent stake in National Marine Dredging Company and 40 per cent of Response Plus Medical, which is involved in management of ambulance services and home health services.
Alpha Dhabi said it had "registered remarkable growth in its financials in the current period due to these strategic investments".
The company, which was previously known as Trojan Holding, is a construction-focused group with more than 40,000 employees.
It has built a range of projects, including mixed-use and high-rise buildings, mass housing developments and infrastructure across the UAE. The group's hospitality development division has built hotels in the UAE, Morocco, Russia and the UK.