Abu Dhabi's IHC reports surge in Q2 net profit on aggressive business growth

Revenue for the second quarter grew by about 50% to $3bn

Al Seer Marine, a subsidiary of International Holding Company. IHC attributed its strong second-quarter results to solid business performance across its subsidiaries. Photo: IHC

Abu Dhabi’s International Holding Company more than doubled its net profit in the second quarter of 2022, as the company continued its aggressive investment strategy through local and international business acquisitions.

Net profit attributable to the owners of the company for the three months ending in June reached Dh2.8 billion ($762.4 million), up 118 per cent compared with Dh1.28bn during the same period last year, IHC said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue for the second quarter grew by nearly 50 per cent to Dh11.34bn, with all of the company's subsidiaries recording "solid business performance", IHC said.

Net profit in the first half of the year also rose 68 per cent annually to Dh4.4bn as revenue grew by more than 120 per cent to Dh21.93bn during the period.

IHC's strategic acquisition of companies in the first half of the year had a "positive impact on the organisation's net worth", as total assets exceeded the company's liabilities to reach Dh163.69bn at the end of June, from Dh88.98bn at the end of December, it said.

“There remains much to be done to capture our strategy's full potential, strengthening the group's performance even further, as other mega acquisition deals present themselves in the second half of this year, locally and globally. It will continue for many quarters,” said Syed Shueb, IHC’s chief executive.

In May, IHC completed a Dh7.3bn strategic investment deal in the green energy sector with India's Adani Group. This was one of the largest deals between the UAE and India, representing 4.8 per cent of the total trade between the two countries, the company said.

As part of the transaction, IHC is investing in three green-focused companies of the Adani Group, including Adani Green Energy, Adani Transmission and Adani Enterprises. The companies are all listed on the Bombay Stock Exchange and National Stock Exchange of India.

In addition, IHC has completed the acquisition of a 70 per cent stake in Arena, a global event structures and services company, invested another Dh92m into SpaceX and bought a 25 per cent share in Dubai-based trading company Invictus this year, it said.

ADX-listed IHC is majority-owned by Abu Dhabi's PAL group of companies. The conglomerate now has a portfolio of 372 subsidiaries, up from 323 in the first quarter of 2022.

The company’s board has also approved the acquisition of three new companies, Cyber Gate, Reach and Emircon, subject to regulatory approvals, the statement said.

Eight of its subsidiaries are listed: Alpha Dhabi, Multiply, ESG, Palms Sports, Al Seer Marine, Ghitha, EasyLease and Q Holding, They operate in sectors such as real estate, agriculture, health care, food and beverages, utilities, industrial, IT and communications, retail, entertainment, leisure and capital.

The companies have recorded "consistently strong returns for shareholders, resulting in a 1.54 gain on earnings per IHC share" from Dh0.88 in the first quarter of the year to Dh2.42 in the first half, the statement said.

The conglomerate also said it is delivering on its growth plans. It expanded its workforce to 52,345 employees, growing by more than 30,000 since the first quarter of last year.