Abu Dhabi's IHC reports third-quarter net profit of $1.12bn

The company's revenue for the three months to the end of September climbed to $3.85bn

IHC has made several strategic investments in recent quarters to further expand its asset base. Photo: IHC
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International Holding Company, one of the UAE's most valuable listed companies, reported lower third-quarter profit on a drop in investment income but revenue surged on the back of robust performance by its different business units.

The company’s net profit attributable to owners of the company stood at Dh4.13 billion ($1.12 billion) in the September quarter, compared with Dh6.41 billion in the same period last year, the company said on Tuesday in a filing to the Abu Dhabi Securities Exchange (ADX), where its shares are traded.

Revenue for the three months to the end of September climbed nearly 14 per cent yearly to about Dh14.15 billion.

“IHC is participating and contributing to a multitude of industries focused on their future readiness, creativity, resilience and digital transformation,” the company said in a statement.

“With a core strategy to enhance shareholder value and achieve growth, IHC drives operational synergies and maximises cost efficiencies across all verticals … it also continues to evaluate investment opportunities through direct ownership and entering partnerships in the UAE and abroad.”

Net profit attributable to the owners of the company for the first nine months of the year jumped more than 4 per cent annually to Dh11.31 billion, while the revenue during the same period rose about 25 per cent to Dh42.82 billion.

The nine-month revenue was boosted by strong performance in various sectors, particularly in the marine and dredging, real estate and services segments, the company said.

Investment and other income declined during the third quarter, while finance costs and general and administrative expenses rose.

IHC has investments in sectors including clean energy, food and agriculture, health care, property, information technology and artificial intelligence in 20 countries across Asia, Africa, Europe and the Americas.

The conglomerate, whose subsidiaries include Alpha Dhabi Holding, Q Holding, International Securities, Al Seer Marine and Multiply Group, has made several strategic investments in recent quarters to further expand its asset base.

Last month, it increased its shareholding in Indian conglomerate Adani Enterprises under its strategy to “explore unique investment opportunities in India”.

In August, it acquired a 49 per cent stake in Abu Dhabi-based developer Modon Properties.

In June, it signed a framework agreement for a share swap with Colombian businesses as the Abu Dhabi conglomerate seeks to expand its assets in South America.

IHC said its total assets stood at Dh235.57 billion as of September 30, compared to Dh228 billion as of last year.

“The UAE’s sustained reform efforts support medium-term growth and a smooth energy transition. The introduction of corporate income tax … is expected to support higher non-oil revenue over the medium term,” IHC said in its economic outlook.

Updated: November 08, 2023, 1:24 AM