Net profits decline 61% at Kuwait's Al Mazaya Holding in H1 2019
Profits affected by fewer units being delivered in first six months of 2019 compared to H1 2018, developer says
Net profits for the first six months of 2019 dipped by more than 60% at Kuwait-headquartered real estate developer Al Mazaya Holding compared to the same period in 2018, a Dubai bourse missive has revealed.
According to a filing on bourse Dubai Financial Market (DFM), the group posted $3.7m (KWD1.1m) in net profit for the six-month period ending 30 June 2019 – a 61% fall on H1 2018’s corresponding $9.6m (KWD2.9m) figure.
Total operating revenue in the first half of 2019 stood at $26.9m (KWD8.2), a marked 40% drop on the same period last year.
In its DFM missive, the Kuwait real estate firm – which is also listed on Boursa Kuwait – said the fall in net profit was a result of fewer units being delivered in the first half of 2019 when compared to the same period last year.
A year-on-year decrease in other revenues also dented the group’s profitability during the same period.
The group’s latest figures mirror its 2018 full-year financial results, which were released in March 2019.
The developer, which is behind projects such as Oman’s Mazaya Residences, said its 2018 revenues dropped to $72.7m (KWD22.1m) from $225.7m (KWD68.6m) in 2017.
Among the Al Mazaya Holding projects that progressed in 2018 is the Mazaya Downtown scheme in Al Sharq, Kuwait, on which Pace has worked with the development company.