Waha Capital third quarter net profit plunges 35% on financial investments loss

The company's funds suffered in the third quarter from volatility in global capital markets

In a year when macro-economic conditions have been difficult, and global capital markets are extremely volatile, the company is benefiting from our long-standing strategy of diversification,” said SalShow more

Waha Capital, which counts Mubadala Investment Company among its shareholders, posted a 35 per cent drop in third quarter net profit due to a Dh37.9 million loss from financial investments.

Net profit attributable to equity holders fell to Dh55.4m from a year earlier period, the company said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares are listed.

Last year the company recorded a Dh90.1m gain from financial investments during the same period.

Total income fell 25 per cent year-on-year to Dh199.4 from a year earlier period.

Waha Capital’s Asset Management business, which manages emerging market fixed income and equity funds, suffered in the third quarter from volatility in global capital markets, the company said.

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“In a year when macro-economic conditions have been difficult, and global capital markets are extremely volatile, the company is benefiting from our long-standing strategy of diversification,” said Salem Al Noaimi, chairman of Waha Capital. “We are confident that our robust business is positioned for growth, with our private investments team working on opportunities to expand our portfolio, and asset management attracting third-party investors to our funds.”

Waha Capital said in October it had acquired a minority stake in oilfield services firm Petronash Holdings in a $88m deal. Petronash, which supplies engineering products for the oil sector, has projected $200m in revenue for this year.

The deal would enable Waha Capital to make “focused direct investments in highly cash-generative companies in our areas of expertise, which include energy, technology and financial services,” Michael Raynes, the company’s chief executive said at the time.

Mubadala owns 15 per cent of Waha Capital, which holds a 13.72 per cent stake in NYSE-listed aircraft leasing company AerCap and a 5.8 per cent stake in a Nasdaq-listed entity National Energy Services Reunited Corp.