Al Khalij Holding profits leap 24% for nine months

Al Khalij is benefiting by the rise in building activity in the capital.

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Qatar’s Al Khalij’s Holding said net profits improved 24.2% over the first nine months of 2011 compared to the same period last year, as cement sales rose to feed the country’s construction growth.

After-tax earnings reached QAR 416m against QAR 33.4m last year. Though sales of cement through its main company, Gulf Cement, rose 30% to QAR 137.3m, lower income from contracts and services and higher costs of sales saw operating profit fall to QAR 45m from QAR 50.46m. Higher short-term saving and rental income boosted the bottom line, however.

Al-Khalij Holding has subsidiaries involved in manufacturing cement and establishing factories for cement and related products as well as general investing and dealing in branded motor yachts.

The company is currently gaining from the rise in construction activity over the last year across building and infrastructure projects in the capital, Doha. The results far exceed those of Qatar National Cement, the only listed manufacturer engaged fully in cement, which saw net profits fall 13% for nine months compared to last year.

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Meanwhile, United Development Company, the property developer behind the 8km Pearl Qatar project off Doha’s coast, said net profit more than quadrupled since last year. Higher revenue – up 33% against last year – and a gain of more than QAR 1.3bn due to a revaluation of investment property, saw the company make an after-tax gain of QAR 1.84bn from QAR 453m last year.

Al Khalij shares fell 0.27% to QAR 14.71 yesterday, while UDC shares slipped 1.1% to QAR 21.4.