Waha Capital reports Q2 loss as it presses on with turnaround strategy

Abu Dhabi investment company posts loss of Dh124 million

Waha Capital, listed on Abu Dhabi bourse reported loss during the third quarter. (Sammy Dallal / The National)

Waha Capital, which counts Abu Dhabi’s Mubadala Investment Company among its shareholders, swung to a net loss of Dh124.4 million in the second quarter of 2019 as total income fell.

The Abu Dhabi investment company’s earnings attributable to owners of the company dipped to a net loss in the three months to June, from a net profit of Dh132.3m in the year-earlier period, it said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

The company’s asset management business recorded a solid income performance, while its private investments unit recorded a loss, mainly due to provisions and one-off items, according to the company.

“While financial results in recent quarters have been impacted by losses associated with the collar hedge on the stake in AerCap Holdings, I am pleased that the company has implemented a strategy to deliver a rapid turnaround, returning to a path of sustainable growth,” said Waleed Al Mokarrab Al Muhairi, chairman of Waha Capital in a statement on Wednesday.

Total income for the second quarter dipped to Dh60.6m from Dh299m during the same period last year, largely due to loss on disposal of equity-accounted associates and joint ventures, the company said.

For the first half of 2019, Waha Capital recorded a net loss of Dh182.2m from a profit of Dh239.7m during the same period last year.

During the period, Waha Capital disposed of 6 million shares in AerCap for Dh1,017m, while the company did not participate in a share buyback programme carried out by the New York-listed aircraft-leasing firm. Consequently, Waha Capital’s stake in AerCap stood at 8.1 per cent at the end of June 2019, down from 12 per cent at the end of 2018, the company said.

The company’s asset management business, which manages emerging market funds, recorded a net profit of Dh239.2m in the first half, while the company’s private investments business, in diverse sectors including aviation, FinTech, energy, healthcare and financial services, recorded a net loss of Dh351.8 million in the six-month period.

Waha Capital is currently pursuing a turnaround plan to set the company on a path of sustainable growth in the future.

As part of this strategy, the company announced in July that a new chief executive, Amr Al Menhali, will join Waha Capital in September 2019.