Waha Capital is eyeing potential investments of up to Dh4 billion in the infrastructure, energy, education and healthcare sectors, seeking to build on the recent success of investments in AerCap and National Petroleum Services (NPS).
The Abu Dhabi-listed investment firm said that its investments in the oil, gas and energy sector may reach as much as Dh2bn in the next two years. The power and infrastructure sector may reach up to Dh1bn, with up to Dh500 million assigned for both education and health care. The plans were laid out in a presentation by the chief executive Salem Al Noaimi to investors on Monday, subsequently posted on the website of the Abu Dhabi Securities Market yesterday.
Mr Al Noaimi said that the firm expected double-digit growth in equity and assets during 2015.
The firm forecasts that the average return on equity and assets over the next three years will reflect “significant improvement compared to [the] average of [the] last three years”.
Waha Capital last month reported a return on assets of 23.6 per cent for the nine months to September, compared with 6.3 per cent in 2013. The rise was primarily attributable to the acquisition of a 20 per cent equity stake in NPS for Dh279m in June, with the energy services company’s performance first reflected in its third quarter accounts.
Waha Capital was part of a consortium of investors that included Fajr Capital and Arab Petroleum Investment, with the overall deal valued at Dh1.36bn.
NPS’s inclusion resulted in Waha Capital’s profits for the third quarter rising to Dh301.2m, compared with Dh107.1m in the year-earlier period.
The firm’s return on equity grew to 51.8 per cent for the first nine months of the year, from 12.6 per cent in 2013.
Waha Capital announced last week that it had hedged 12 million AerCap shares to enable it to use its shares as collateral for a loan, the second such deal arranged in the past three months. As part of the deal it sold three million shares in the company, reducing its stake to 12.6 per cent from 14.1 per cent.
The firm’s share price fell by 0.34 per cent to Dh2.96 yesterday, in line with a general sell off of stocks stemming from fears over weakening oil prices. The company’s shares are up 37.7 per cent so far this year.
jeverington@thenational.ae
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