Alpha Dhabi Holding's Q1 profit surges to $536m on revenue growth

Company's revenue rose eight times on an annual basis to more than $2.2bn

Alpha Dhabi Holding listed on the Abu Dhabi Securities Exchange in June last year. Reuters

Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, reported a big jump in its first-quarter net profit driven by a surge in revenue.

The Abu Dhabi-based company’s net profit surged to more than Dh1.97 billion ($536 million) in the three months to March 31, compared to Dh100m in the prior year period, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

Its revenue during the January-March period rose eight times on an annual basis to nearly Dh8.2bn, compared to Dh1bn in the same period last year.

The company's share price was 0.66 per cent lower at the close of trading on Friday to Dh27.08, giving it a market value of about Dh270.8bn.

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 has stakes in National Marine Dredging Company, Response Plus Medical and 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.

In January, 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.

It is also teaming up with Abu Dhabi's holding company ADQ as well as Etisalat and First Abu Dhabi Bank to launch Wio, a new digital banking platform.

Alpha Dhabi, which has a share capital of Dh10bn, generated almost Dh1.3bn net cash from operating activities in the first quarter, a yearly increase of 387 per cent.

Total assets grew nearly 11 per cent on a quarterly basis and stood at more than Dh52.5bn as of March 31.

Alpha Dhabi, which also posted a record profit in 2021, said last month that it plans to further expand its business in core sectors including construction, real estate, health care, hospitality and petrochemicals.

The Abu Dhabi-based company will look at businesses and investments that have “established operations, generate income and are value-accretive to Alpha Dhabi’s portfolio such as the acquisition of a significant stake in Aldar Properties in 2021”, it said.

The company plans to pursue international investment opportunities as part of its wider strategy to boost growth, it added.