9M operating revenues down 60% at Kuwait's Al Mazaya Holding

The developer's operating profit for the same period declined by almost 27%

Operating profits at Kuwait's Mazaya for the first nine months of 2018 have fallen by 25% compared to the same period in 2017.
Operating profits at Kuwait's Mazaya for the first nine months of 2018 have fallen by 25% compared to the same period in 2017.

Operating revenues at Kuwaiti property giant Al Mazaya Holding have plummeted by more than 50% in the first nine months (9M) of 2018, with its operating profit also falling by a quarter compared to the same period in 2017, regulatory filings have revealed.

According to Q3 financials filed on the Dubai Financial Market (DFM), the group’s operating revenues for the period ending 30 September 2018 stood at $61.68m (KWD18.75m), a 60.31% drop on 9M 2017, when the company brought $155.4m (KWD8.86m) in cash.

READ: Mazaya Residence Al-Mawaleh on track for H2 2018 delivery

Operating profits did not fare much better, standing at $21.39m (KWD6.5m) in 9M 2018, a 26.62% drop on the $29.14m (KWD8.85m) reported for the first nine months of 2017.

The same DFM filing revealed basic earnings per share year at Al Mazaya stood at $25.17 (KWD7.65) for 9M 2018. This compares to the $36.02 (KWD10.95) per unit that shareholders earnt during the same period a year ago.

Total assets for the firm were valued at $710.87m (KWD 216.09m), a 7.18% drop on same period in 2017.

In the missive issued to DFM, Al Mazaya said the decrease in net profit was due to the higher number of real estate deliveries it made in 9M 2017, compared to 9M 2018. 

READ: Construction of Kuwaiti giant Al Mazaya's Oman homes 65% complete

The results come three months after the developer reported progress on its construction schemes that are under way in Kuwait, the UAE, and Oman.

Speaking at the end of July this year, Al Mazaya said it is currently “working on full-fledged financial and technical business plans […] for developing residential cities in Jaber and Sabah Al Ahmad areas as part of the public-private partnership programme” that is being implemented by the Public Authority for Housing Welfare.

The developer is traded publicly on the Kuwait Stock Exchange in addition to its DFM listing.

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