Alpha Dhabi Holding's 2021 net profit surges following an 'exceptional year'

Investment company's net profit grew to Dh5.16 billion last year

Abu Dhabi Securities Exchange. Alpha Dhabi has interests in construction, health care, hospitality and industry. Reuters

Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, reported a sharp rise in its net profit for 2021 as revenue surged following an “exceptional year” for the conglomerate.

Net profit for the 12-month period grew to Dh5.16 billion ($1.4bn), from Dh218 million in 2020, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue almost quadrupled annually to Dh18.8bn in 2021, compared to Dh3.78bn a year earlier, led by strong performance in the company's health care, construction and hospitality verticals.

The company's share price was 1.1 per cent higher at the close of trading on Thursday to Dh27.28, giving it a market value of about Dh273bn.

“We have achieved significant progress against our strategic priorities in 2021," Hamad Al Ameri, chief executive and managing director of Alpha Dhabi Holding, said.

"Alpha Dhabi reported very strong commercial results across all of its key performance drivers, including Pure Health, National Marine Dredging Company and Trojan."

The company, which has a paid-up capital of Dh10bn, said it focused on strategic investments locally and internationally.

“2021 has been an exceptional year for the company in so many ways. The results should therefore be read bearing in mind the events which took place in the middle of the year 2021, which transformed the company into one of Abu Dhabi's premier listed investment groups,” the statement said.

Alpha Dhabi, previously known as Trojan Holding, has grown into a regional conglomerate. It was listed on ADX in June last year and has embarked on an expansion spree since then.

Last year, it acquired the entire share capital of Murban Energy, a 70 per cent stake in Mawarid Holding Investment and 100 per cent of the share capital of Sublime Commercial Investment, through which it holds a stake in Aldar Properties.

The company also bought a 65.11 per cent stake in National Marine Dredging Company, which it raised by 3.38 per cent in January, as well as 40 per cent of Response Plus Medical and 65 per cent of Sandstorm Motor Vehicles Manufacturing.

It also invested Dh1bn in Ta'ziz, an industrial service and a logistics organisation and acquired a hotel in the Chechen Republic.

Alpha Dhabi Holding's total assets rose to Dh47.2bn as of December 2021 from Dh5.39bn a year ago, its balance sheet showed.

The earnings per share amounted to Dh0.44 in 2021 compared to Dh0.90 for 2020.

This year, it acquired a 25.24 per cent stake in Al Qudra Holding and increased its share in Aldar Properties, Abu Dhabi’s biggest developer, to 29.8 per cent from 17.5 per cent.

Alpha Dhabi Holding said last year that it plans to invest $2.2bn in real estate, hospitality, health care, petrochemicals and “other promising sectors” in the UAE and outside the country.

“We enter 2022 with strong momentum and are moving with speed to bring forward new business acquisitions that will contribute to the company's Dh8bn investments plan in real estate, hospitality, health care, petrochemicals and other vital sectors; this remains at the core of our strategy this year," Mr Al Ameri added.

Last month, it was announced that Abu Dhabi holding company ADQ will merge its health care subsidiaries with Alpha Dhabi’s Pure Health Medical Supplies to create the UAE’s largest healthcare provider.

As part of the deal, Abu Dhabi Health Services Company, better known as Seha, and the National Health Insurance Company, better known as Daman, will be consolidated into Pure Health, Alpha Dhabi said.