Sorouh’s third-quarter profits fall Dh128m

Profit made by Abu Dhabi's second largest developer for the three months to September 30 dropped almost 70pc from Dh187.3m in 2009 to Dh59.3m this year.

ABU DHABI 18th April 2010. CITYSCAPE ABU DHABI 2010. Visitors  at the opening day of Cityscape, Abu Dhabi  at ADNEC yesterday(sunday).       Stephen  Lock   /  The National    Sorouh

Sorouh Real Estate, the Abu Dhabi-based developer, saw its third-quarter profits drop 68 per cent, to Dh59.3 million, compared to the same quarter last year, the company announced today.

The profit made by Sourouh, the capital's second largest developer from the three months to September 30 fell sharply from 2009's Dh187.3m.

September was also the month that saw Mounir Haider, the chief executive of Sorouh, step down from his role for "personal reasons".

Sorouh is one of only two publicly-traded property developers based in Abu Dhabi. Like development companies across the sector, it has been feeling the impact of dramatically lower sales.

Today's figures come after second-quarter profits which dropped by more than 75 per cent to Dh151m, compared to the second quarter last year.

Though the third quarter results also contained rising finance costs, which tripled from Dh26.8m to Dh72.3m, the performance was largely in line with market expectations.

Sorouh said the profit was "mainly attributable to a plot sale, rental income from the investment portfolio and construction contracts".