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YoY net profits decline 94% at Dubai-listed Damac in Q1 2019

Q1 2019 revenues also note 53% YoY drop to $244-million, but chairman Sajwani lauds billion-dirham sales in first quarter

Damac is behind some of Dubai's largest projects.
Damac Properties
Damac is behind some of Dubai's largest projects.

Damac Properties’ profitability took a major hit during the first three months of 2019, with the Dubai-listed real estate company reporting a 94% decline in net profits compared to Q1 2018.

In a financial statement on Dubai Financial Market (DFM), Damac said its Q1 2019 net profits stood at $8.4m (AED31m), a significant decline compared to its $131.7m (AED483.9m) bottom line in Q1 2018.

Total revenue in 2019’s opening quarter stood at $244m (AED896.4m), a 53% drop on the same period last year, when the group brought in $517.2m (AED1.9bn).

As of 31 March 2019, Damac's gross debt stood at $1.4bn (AED5bn); cash and bank balances stood at $1.8bn (AED6.6bn); and development properties stood at $2.5bn (AED9.3bn), largely unchanged from December 2018.

Speaking on the results, Hussain Sajwani, chairman of Damac Properties, said the group “started the year strong with sales of [$326.7m] AED1.2bn in Q1 2019”.

He added that Damac however “remained conservative in [its] approach, to ensure that [it is] financially agile to take on new opportunities”.

During Q1 2019, Damac – which is behind some of Dubai’s most high-profile projects – awarded $117m (AED430m) worth of contracts for its developments.

In Damac's DFM statement, Sajwani added: “We thank and support the UAE’s leadership, who have long cemented the country as a global hub for business and innovation.

“Their efforts and proactive response to global shifts have ensured that the UAE continues to grow from strength to strength.”

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Construction Week - Issue 748
Sep 01, 2019