Palm Utilities’ net profit up 32pc
Dubai, May 28, 2013
Palm Utilities, a Dubai World company, said its net profit surged 32 per cent in 2012 to hit Dh164 million ($44.6 million) compared to Dh125 million the previous year.
Announcing the results, Palm Utilities said its revenue too posted solid growth hitting Dh621 million, up 10 per cent year-on-year over Dh564 million in 2011.
The company’s customer base currently comprises 14,000 end-users and 388 towers, owned by 180 developers. Palm Utilities, is also the holding company for Palm District Cooling, the region’s leading supplier of chilled water to multiple buildings for air conditioning.
Commenting on the results, CEO Marwan Al Naqi said: “These excellent results are, by far, the highest for us, representing yet another record for the company since its establishment in Dubai. This truly reflects the ongoing economic recovery across all segments of the emirate.”
“The tourism and real estate sectors have seen remarkable improvements in Dubai, with high occupancy rates in hotels, and residential and commercial units, even as the emirate reaffirms its position as one of the leading international business and tourism destinations,” stated Al Naqi.
“Moreover, the various cultural, marketing, recreational and sports events held in Dubai have played an effective role in attracting visitors to the emirate, in turn contributing to a 17 per cent increase in the demand for our services last year compared to 2011.”
The double-digit revenue growth for Palm Utilities has been influenced by the solid gains achieved by Dubai’s economy, which has set new records in the tourism sector last year, having soared by 9.5 per cent over 2011 to surpass the threshold of 10 million visitors to the emirate in 2012, he added.
According to him, the UAE’s construction sector also witnessed fast track growth in early 2012, buoyed by the 5 per cent jump of the emirate’s population to 2.1 million and the increased trust of investors, individuals and businesses to capitalize on integrated infrastructure and strategically located real estate developments.
“Leveraging on quality systems, corporate performance, development and corporate excellence initiatives have helped us raise the bar of productivity and efficiency," said the company chief.
"This is clearly evident in the 7 per cent lower operating costs that have led to a higher profit margin. For our part, we remain committed to spread the culture of quality and business excellence – two key drivers of sustainable and comprehensive development,” he noted.
“These positive results have prompted banks to reduce interest rates on the current loan, which will enable us to capitalize on the increased liquidity and ultimately boost the company’s financial performance and support our pursuit of sustained growth,” added Al Naqi.-TradeArabia News Service