URC announces $28.9mn operating profit for H1
Total revenue increased by 11% to reach $80.4mn for first half of 2014
United Real Estate Company (URC), the MENA region's leading real estate developer, has achieved a net profit of KD3.5mn ($12.3mn) and an operating profit of KD8.2mn ($28.9mn) for the first half of 2014.
URC 's chief executive officer, Engineer Mohammed Ahmed Al Saqqaf, said: "We began the year with an aim of accomplishing the objectives outlined in our Strategy Report for 2014. Accordingly, we managed to eradicate any assets in our real estate portfolio without a real intrinsic value, as recently carried out in Qatar.
"Additionally, our total revenue increased by 11% to reach KD22.8mn ($80.4mn), for the first half of 2014, as opposed to the same period in the previous year.
"This was driven by a rise in our contracting and services revenue through the bids awarded to our subsidiaries in the project management, construction management and facilities management industries, UBC, KUCM and UFM, respectively.
"This result fulfills our other strategic objective for the year, which was to gain more independent third party contracts from our operational subsidiaries."
Furthermore, during the second quarter of this year, URC distributed 8% in cash dividends, which were approved during the company's annual general assembly meeting held in April, for a total amount of KD8.6mn ($30.3mn) .
In addition to achieving sound financial results, URC engaged in a number of sales and marketing projects and continued to develop its Corporate Social Responsibility (CSR) programs through several initiatives organised this year.
The company participated in two real estate exhibitions on both a local and on an international level, including 'MIPIM', one of the most prominent international real estate events held annually in Cannes, France.