Property gain boosts UDC profit to QR1.8bn

Alfardan and Sholy: Robust growth in challenging times

A one-off ‘revaluation gain’ in property investment helped United Development Company (UDC) more than quadruple its net profit to QR1.82bn in the first nine months of this year.Revenue, otherwise, fell 34% to QR1.10bn, whereas cost of revenue shot up 44% to QR602.25mn. Still UDC reported a 24% rise in gross profit to QR492.85mn, according to its financial statement filed with the Qatar Exchange.There was a fresh QR1.37bn ‘revaluation gain’ on investment property and other income more than doubled to QR121.63mn. But dividend income fell 26% to QR28.01mn.Attributing the company’s financial performance and continued success to a clear vision of what could be achieved as a result of Qatar’s economic stability, UDC chairman Hussein Alfardan said, “These results show that UDC’s growth is performing well against the overall economic growth in the Qatar economy.”UDC managing director and president Khalil Sholy said, “Our good performance is in direct relation to Qatar’s robust economy. By maintaining our focus on delivering high quality products and services across the group, we have been able to achieve growth despite the challenging times.”Expressing confidence that its business strategy is sound, he said, “We continue to grow and deliver based on our strategic objectives, while searching for new and innovative business ideas and opportunities to enhance the synergies with our operating companies.”Although general, administrative, sales and marketing expenses rose 31% to QR165.39mn, UDC’s operating profit grew five-fold to QR1.85bn. However, net share of results of associates plunged 90% to QR10.18mn. Net finance costs were up 27% to QR16.84mn.Total assets were valued at QR14.67bn, comprising current assets of QR6.40bn and non-current assets of QR8.27bn.Total equity stood at QR6.86bn on a capital base of QR1.61bn and earnings-per-share was QR11.3 at the end of September 30, 2011.Sholy said UDC had reached an agreement with a leading Russian financial institution to jointly fund investment in the fields of oil and gas, infrastructure and development of large scale projects in both countries.He also said the UDC continued to hand over completed projects at The Pearl-Qatar and “in the last quarter of 2011 and the first half of 2012 we will take over both Quanat Quartier and Medina Centrale.”Further openings of new exclusive retail outlets and world recognised restaurants are expected in 2011, Sholy said, adding the Nikki Beach Resort construction work has started with a view to expanding its reach into hospitality business.