GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Banking and Investments

 
  Share
 

FY 2017

(Million KD)

FY 2016 

(Million KD)    

Var (%)

   Q4 2017

(Million KD)

Q4 2016

(Million KD)

Var (%)
Operating Revenue       38.5 33.9  +13.6% 16.6  13.4 23.8%
Gross Profit 12.1  13.9  (13.4%) 1.5 3.3  (53.4%)
EBITDA 13.9 19.6 (29.2%) (1.4)   6.1  (123.1%)
Net Profit 10.6 16.1   (34.3%)  (2.0)  5.0  (139.7%)
EPS (fils)  11.3  17.2  --  --  --  -- 
Figures in the table above have been rounded 
 
Kuwait, March 13, 2018 -   National Real Estate Company (NREC), a leading regional asset manager and developer headquartered in Kuwait with USD2 billion in projects under development in the UAE, Egypt and other markets, today released its financial results for 2017.
 
The Company recorded an operating revenue of KD38.5 million, an EBITDA of KD13.9 million and a net profit of KD10.6 million. NREC's core operational activity continues to grow, however the decrease in the EBITDA and Net Profit for the year is mainly attributed to a fair valuation write down taken on BOT projects nearing their expiry within NREC's portfolio.
 
Board of Directors Recommendation
 
The Board of Directors has recommended a dividend distribution of 10% of bonus shares, subject to approval of the General Assembly of Shareholders.
 
2017 Business Review
 
NREC Vice Chairman Faisal Sultan said, “2017 was a very active year on many fronts. Operationally, our rental business in Kuwait and Jordan continued to perform, our Libyan business has improved with the improving of security situation in the country, and the Kuwait market presented new business opportunities that we are actively pursuing. Current developments continued to progress as well. We have crossed important milestones in our two largest projects, Grand Heights in Egypt and Reem Mall in UAE. Both projects are progressing well and in line with expectations. Our balance sheet was also an area of constant focus.
 
In 2017 we worked on strengthening our balance sheet, with good results to date, looking forward 2018 will be a year where NREC continues to focus on asset repositioning and debt reduction, with a stated objective of reducing leverage to below KD 100 Million.  This objective along with the execution of our ongoing projects, is an essential first step towards restoring regular cash dividend payments to shareholders”.
 
2017 Business Highlights
  1. In Kuwait, NREC was selected as one of 5 pre-qualified local companies by the Kuwait Authority for Partnership Projects (KAPP) to bid on the South Jahra Labor City and NREC expect further nominations during 2018. KAPP is the authority in charge of leading the country's Public Private Partnership (PPP) projects.
  2. Reem Mall's progress crossed important milestones. Al Farwaniya Property Developments, a partnership between Agility, Agility affiliate United Projects for Aviation Services Company (UPAC), and National Real Estate Company (NREC), signed an agreement for a $457 million senior credit facility with a syndication of four local and international banks: ADCB, Standard Chartered, Noor Bank and Gulf Bank Kuwait. In parallel, a $620 million construction contract was signed with Itinera Ghantoot, a UAE-Italy joint venture, who will serve as the lead contractor on the $1.2 billion project. The 32-month construction program commenced in the fall.
  3. At the Grand Heights residential community in Egypt, NREC has sold 995 units and plots, of which 460 were delivered as of December 31 2017, with a total cumulative sales value (delivered and to be delivered) of EGP 3.4 billion.
  4. NREC's JV in Libya, Palm City Residences had a positive year reporting operating profits of 3.3 million euro with occupancy rate rising from 8% to 24%. The project continues to be the best choice for multinational companies and government agencies participating in the recovery of Libya.
2017 Balance Sheet Highlights
  1. Strengthened NREC's capital and shareholder base with the successful placement of the convertible KD 31 million financing from Agility Logistics Company which is in the process of being converted to equity.
  2. Bank dues were reduced from KD 161.7 million to KD 149.4 million.



Posted by : GoDubai Editorial Team
Viewed 8625 times
Posted on : Tuesday, March 13, 2018  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Mashreq Bank honored twice at EMEA Finance Middle East Banking Awards
Next Story : Mashreq to participate in Careers UAE for the 18th consecutive year
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Australia's Number No.1 Natural Skincare Brand* Partners With Jessica Kahawaty
Matthew Fitzpatrick Wins the 2018 Omega European Masters
Introducing New Make-up From Rodial That You Need In Your Kit
Rado reimagines a bold 1960s classic for the 21st Century
Scuderia Ferrari presents Fall winter collection
NARS Erdem SS19 Beauty Report
Introducing VK Beauty Lounge & Bar
Alina Anwar Couture Launches in UAE
Introducing Home Fragrance at Robinsons, Dubai Festival City
Diana Arno Expands Online Shopping to Middle East
Defying Age With Skin Republic's Gold and Platinum Face Masks
British Classics Make a Comeback in Jack Wills AW18 Collections
The Future Is Here
Roberto Cavalli's Exclusive Duo of Fragrances
Bring a Touch of Sophistication to Your Home with The Exclusive SmegXDolce&Gabba...
Lacoste.12.12 Collection
Trevor Sorbie Range Relaunches in the UAE
Carl F. Bucherer Celebrates Debut of Its Online Boutique on Jd.Com Launch of Lim...
GROHE Smart Home: The App-Controlled Water Security System
Honda voted “Preferred Sedan Car Brand of the Year” for the fourth year in a row
FOREO To Attend TFWA: the World's Largest Travel Retail Show
William Collection by Hugo Boss
Le Meridien Dubai Hotel & Conference Centre's Restaurant Promotions- October
Al-Futtaim Toyota swoops another win at the Filipino Times Awards
PAN Emirates bedroom festival with discount up to 70%
Al-Futtaim ACE launches its stylish new Outdoor collection
Mousses Etoiles to reveal the latest luxury designs of commercial-use outdoor fu...
Dubai Design Week continues to grow, cementing Dubai as the design capital of t...
Tips & Toes Hits the Big 3-5!
Harmony and Sustainability Define Ideal Standard's ‘Esedra' Ceramic Bathroom Col...
Tata Communications launches a specialised cyber security lab at Shanmugha Arts,...
Pamper yourself at Perfumery & Co this month, at The Dubai Mall
Consonni Wraps Up La Vuelta a Espana With a Seventh Place Finish for UAE Team Em...
Akamai Unveils Solutions at IBC 2018 Designed to Mitigate the Challenges and Cos...
Abu Dhabi wins bid to host 2022 ITU Grand Final in world first
du Opens New Business Centre in DIFC for Enterprise Customers
Cheyenne Woods: Stepping out of Tiger's shadow
Sharjah's Recognition as ‘Accessible City for Physically Disabled' Hailed as His...
Etihad Cargo Increases Focus on Cold Chain Industry with ‘Freshfoward' Product
Cadillac XT4 Delivers Dynamic Driving Experience
International School of Creative Science Muwaileh celebrates outstanding student...
Volunteers from the UAE join hands with the community in Tasset Peulh village in...
New Homologations for Pirelli Tyres
The Dubai Business Women Council meets with the UN Assistant Secretary-General t...
Debut Jaguar I-PACE eTROPHY Calendar Announced
UOWD launches Ministry-accredited Foundation Studies Program to guide senior sch...
World's first cyborg on artificial senses
O Boticário Opens in Dubai its First Amphora Store outside Brazil Come Join...
Registration for the 5th edition of Camel Trek is now open
Masdar, ADFD and PUC partner to build solar power plant with battery storage in ...