Al Mazaya Holding Company Assigned an Initial Corporate Rating of ‘BBB-’ Long-Term and ‘A3’ Short-Term with ‘Stable’ Outlook
A net profit of KWD 6.84 million and 11.01 EPS in Q3 2016
Al Mazaya Holding’s operating income grows to KWD 42.53 million
Al Soqabi: “The results reflect the prudent strategy and plan to achieve a sustainable growth”
> Revenues generated from sales increased by 7.86%
> Revenues generated from leasing activities grew by 15.98%
> Shareholders’ equity amounted to KWD117.07 million in Q3, 2016
> Gross assets totaled to KWD 228.18 million in Q3, 2016
> Long term liabilities are 11.00% down by end of Q3, 2016
> Short term liabilities are 46.94% down by end of Q3, 2016
> Total liabilities are 29.00% own by end of Q3, 2016
Al Mazaya Holding (K.S.C.P) announced its financial results for the third quarter of 2016.
The company achieved a net profit of KWD 6.84 million in the third quarter, compared to KWD 6.73 million in the corresponding period in 2015. Earnings per share reached KWD 11.01 fils, compared to KWD10.86 fils in the Q3 of 2015.
Speaking after the board meeting that was held recently in the presence of members of the board of directors, Eng. Ibrahim Al Soqabi, Group CEO of Al Mazaya Holding, said: “Al Mazaya Holding has achieved a new growth in its financial results in the third quarter of 2016, thanks to its remarkable performance and feasible achievements. The results are attributed to the success in meeting thewell-formulated target for 2016. The company was able to follow the schedules precisely and efficiently, boosting the process of sale, lease and delivery and increasing the operating income by 9.15% to KWD 42.53 million by the end of the Q3 of 2016. This is in comparison to KWD 38.97 million during the same period in 2015.”
He stressed that the big jump in revenues was due to strong marketing campaigns and the huge revenues generated from sales increased by 7.86% to KWD 36.92 million, compared to KWD 34.23 million in Q3 2015. Revenues generated from leasing activities grew by 15.98% to KWD 5.42 million, up from KWD 4.67 million in the corresponding period last year. Other revenues generated from project management activities were KWD197.12 thousands, a 193.94% up as compared to the KWD 67.06 thousands achieved in the same period last year.
Al Soqabi said: “The financial results are the outcome of the operation activities of Al Mazaya and its rental revenues from many projects such as Al Olia Tower, a project located in Riyadh, KSA and owned by one of Al Mazaya subsidiaries. Al Olia Tower is 70% occupied, and Al Mazaya has included it in its portfolio of income-generating projects. In addition, there is the 80% completed Al Mazaya Logistics in Bahrain. The company continued to generate high rental revenues from its 100% occupied projects such as Al Mazaya Towers, Clover Medical Tower and 85% in Al Maathar Towers and 96% in Sky Gardeners owned by one of Al Mazaya’s subsidiaries”.
With regard to the Al Mazaya’s financial results in the third quarter of 2016, Al Soqabi said: “Al Mazaya was able to maintain growth in its operational performance in the third quarter of 2016, achieving net profits in line with well formulated targets”.
Furthermore, he added that the gross assets totaled to KWD 228.18 million in Q3 2016, as compared to the KWD263.85 million achieved in the same period in 2015. The decrease in gross assets was due to the handover of Q-Point units, which were included in the income statement for the period ending September 30, 2016. Shareholders’ equity amounted to KWD117.07 million in Q3 2016, a 9.05% growth as compared to KWD107.36 million in Q3 2015.
He clarified that the total liabilities decreased to KWD 111.11 million, down by 29.00% as compared to the KWD156.50 million in 2016. He said that the long term liabilities have decreased by 11.00% from KWD 78.12 million to KWD 69.52 million, while the long term liabilities have decreased by 46.94% from KWD 78.38 million to KWD 41.58 million. He attributed this decrease mainly to the transfer of the advance payments received from customers to revenue after they received their residential units
Achievements over the 9 months:
In conclusion, Al Soqabi noted that Al Mazaya is currently studying many investment opportunities in the local and international markets. The company regularly monitors the rapid developments in the financial and international markets and the impacts on the region’s real estate market to examine the impacts on its existing and underway projects, enabling the company to make informed decisions regarding its entry in new ventures. He underlined that the company’s growth in these markets will entail many strategic partnerships and joint ventures with elite investors to achieve the highest returns that serve the interest of the company and investors alike.