Barwa Group profits rise more than 8% in Q1
Investment group benefits from project value increase to repay loans
The Barwa Group boosted its net profits by more than 8% for the first quarter of this year against the end of 2009, according to its latest figures.
The Qatari investment and real estate company recorded a net profit of QR 210 million from the start of January 2010, up from the QR 194 million. Revenue for the first quarter of 2010 was QR 617 million, a 5.29% increas over first quarter 2009 revenue of QR 586 million.
Results were boosted by a QR 1.3 billion increase in the value of projects under construction, which includes Barwa Financial District, as well as Barwa Village, which the company has started to lease and is expecting soon to operate Barwa Housing (Masaken Al Saliyah) and the 1st phase of Barwa Al Sadd.
Increased revenues from rents and services, plus profit on sale of property, along with a decrease in net finance costs, also bolstered the bottom line, allowing it to repay key loans.
“The company paid back QR 4.3 billion dedicated for Shariah-compliant financing in the first week of April 2010,” said Mr. Yousif R Al-Khater, Barwa Group CEO in a statement.
“This payment was made through various means, including revenues from businesses undertaken for the government and for some other organisations.
“All proceeds from the transactions have been dedicated to pay- back the Shariah-compliant financing that the company had obtained earlier. This comes within the framework of Barwa's commitment to reduce its overall cost of debt and to leverage it in a productive way.”
Barwa Group in total has 40 businesses in five business segments, which include local and international real estate and infrastructure investment.