Dubai Investment Q3 profits slumps 88pc
Dubai, November 4, 2011
UAE conglomerate Dubai Investments has reported an 88 per cent drop in its third-quarter net profit with the company impacted by losses on some of its investments.
The company, in which sovereign fund Investment Corporation of Dubai (ICD) owns an 11.5-per cent stake, made a third-quarter net profit of Dh24.9 million ($6.8 million), compared with a net profit of Dh213.61 million in the same three months of 2010.
The results were below the expectations of the company's chief executive Khalid bin Kalban, who said last month that he saw a profit of Dh30 million.
The company made a loss of Dh19.4 million on fair value of investments in the quarter, compared with a gain of nearly Dh37 million in the corresponding period in 2010.
Dubai Investments is involved in several sectors ranging from real estate to manufacturing. Its manufacturing business faced setbacks due to regional unrest in key markets like Libya, Syria and Yemen.
The company said last month it had secured Dh700 million of a planned Dh1.2 billion loan.
Shares of Dubai Investments ended Thursday 2.6 per cent higher, with earnings announced after the close of trading.-Reuters