Press Release

ALMAZAYA holding company has announced its annual financial results for the first half of the year 2013, in the wake of the meeting of the board of directors which was held on Sunday, July 21, headed by Chairman Rasheed Al Nafisi, and the presence of members of the board of directors, and CEO Ibrahim Al Saqabi.

On this occasion, the chairman said that the company managed to achieve a gross profit of 2.9 million Kuwaiti dinars for the first half of 2013, and the company recorded a net profit of 0.4 million Kuwaiti dinars in the same period with profitability of 0.73 fils per share.

The total revenue of the company has reached 15.2 million Kuwaiti dinar distributed by operating revenue of 13.6 million Kuwaiti dinars, and other revenue of 1.6 million Kuwaiti dinar. AL MAZAYA attributed the good results to the success in completing and delivering of a large number of residential units and offices in projects in Dubai, as well as high occupancy rates in its projects in Kuwait, Dubai, and KSA, that is considered income generating.

During his review of the financial statement of the company in the first half of the current year, Al Nafisi said that the size of the company’s assets amounted to about 220.5 million dinars, while shareholders equity stood at 84.4 million dinars, indebtedness of the company to banks is 46 million dinars, noting that these figures reflected the strong financial situation of the company which prepares it to complete the implementation of the remaining plans for the current year in a competent and consistent way.

Al Nafisi continued by saying that the first half profit of the current year was the result of many operational activities – among which was the swap deal that AL MAZAYA holding company conducted with the national international holding company, in which AL MAZAYA acquired the third tallest tower for the use of commercial office space within the system of AL MAZAYA towers at the heart of Kuwait capital.

This is in addition to the two plots of land under construction in the project of Q POINT – ALLIWAN, and that in exchange for the exit from office units (with a total of 101 thousand square meter at ALJUMAIRA towers area, which resulted in a gain of 658 thousand dinar in profit which will be included in the statement of profit and loss in the second quarter of the current year), the company also achieved profits from its income generating projects in Kuwait, Saudi Arabia, and Dubai, as well as the successful completion and delivery of a range of projects that were sold earlier.

He added that the first half of the current year saw a wide plan of action to reschedule the credit facilities of the company and converted them into long term facilities, completing that by signing an agreement to renew the credit limit in the form of TAWARROQ worth 5 million dinars with one of the local Islamic banks, in order to reschedule the repayment of indebtedness and reducing the cost of funds, which resulted in decreasing of finance cost of 19% as of the second quarter of the year 2013, as well as reducing the short term obligations by 5 million dinar and converting them into long term commitment.

Al Nafisi wound up his statement by announcing the latest deals that AL MAZAYA Holding concluded through one of its subsidiaries in Dubai (AL MAZAYA Real Estate Company), which is related to contract management with one of the investors, and the company was able to establish through this deal a settlement with the main contractor resulting in a profit of 485 Thousand Kuwaiti dinar. It is intended that these profits will be included in the balance sheet of the company for the third quarter of this year.