Abu Dhabi’s Aldar Properties is seeking to refinance debt, including a $1.2bn bond maturing next year, after its quarterly earnings surged on the back of a one-off gain from the acquisition of its main rival in the oil-rich emirate.

Aldar and Sorouh, Abu Dhabi’s No 1 and 2 developers, consolidated operations earlier this year in a state-backed deal after property prices in the emirate tumbled by over 50% since the global financial crisis in 2008. Both firms rely heavily on housing contracts awarded by the government.

The developer, which has outstanding liabilities of about 14bn dirhams ($3.81bn), is looking to refinance debt, chief financial officer Greg Fewer said in a conference call yesterday.

“We will be requesting many discussions with banks on various debt, including the $1.2bn debt maturing next year,” Fewer said.

The developer made a second-quarter net profit of 1.25bn dirhams ($340.3mn), compared with 418mn dirhams in the same period in 2012, the company said in its first earnings announcement after the merger completion in June.

Quarterly earnings included a one-time gain of 2.6bn dirhams from combination of its business with Sorouh, Aldar said.

However, revenue for the quarter dropped to 1.3bn dirhams from 4.6bn dirhams in the prior-year period.

The developer booked provisions, impairments and write downs of 1.1bn dirhams in the quarter.

Aldar said it would handover more than 7,400 units in next 12 months. Its shares have more than doubled year-to-date on the back of Sorouh merger.

 

Kipco

Kuwait Projects Co (Kipco), the country’s largest investment company by assets, reported a 11% rise in second-quarter net profit yesterday and said it was on track for double-digit revenue growth this year.

Net profit in the three months to June 30 was 9.5mn dinars ($33.4mn) compared with 8.6mn dinars in the same period last year, a company statement said.

Kipco, a major regional investment house with stakes in media, industrial, financial and real estate companies, said its revenue growth may accelerate during the rest of the year. Revenues in the first six months of 2013 rose by 23% to 307.6mn dinars.

 

Orascom Telecom

Orascom Telecom Holding, the biggest company on Egypt’s benchmark stocks index, posted a second-quarter loss amid foreign exchange losses and financial expenses, Bloomberg said.

The company reported a net loss of $28.1mn compared with a profit of $26.5mn in the year-earlier period, it said in a statement to the Regulatory News Service. Revenues fell 3.3% to $903.8mn. The shares declined 0.9% to 4.59 Egyptian pounds at the close in Cairo, trimming the gain this year to 16%.

“Our operations continued to be negatively impacted by regulatory and government actions that are beyond our control and decision,” chief executive officer Ahmed Abou Doma said in the statement. Results were hurt by local currency devaluations in Algeria and Pakistan, he said.

Orascom, which merged with Russia’s Vimpelcom Ltd in 2011, said it continues to face “challenges” in Algeria, its biggest revenue generator and where it has been locked in an ownership dispute with the government over the local unit since 2010.

Foreign exchange losses were $86mn and financial expenses amounted to $126mn, the company said. Income from Algeria’s Djezzy retreated 1.5% to $464.2mn, it said. Subscribers in Orascom’s markets in Asia, Africa and N. America increased 4% to 85.9mn.