DOHA: Barwa Real Estate Group, one of the leading real estate and investment companies in Qatar and the region, posted a huge fall in its net profit for the first nine months of 2013. The group’s net profit dropped to QR467.5m during the nine months from QR779.1m for the corresponding period in 2012.
The company’s interim financial statements disclosed to Qatar Exchange (QE) also revealed a drop in its earnings per share. The EPS amounted to QR1.20 for the period ending September 30, 2013 as against QR2 for the same period in 2012 .
The company attributed the estimated 40 percent loss in the net profit to the reported delay in finalising some of its deals and claimed it continued to improve operations proficiency to increase rental profit.
Cost-cutting
“In spite of the delay in finalizing some deals, which resulted in reducing the net profit compared to the period in comparison, yet the group continues to improve operations proficiency and accordingly increase rental profit by 31 percent.
“The group succeeded in cutting down costs and expenses, which is represented in reducing general and operating costs by 9 percent and keeping a steady volume of operational expenses despite the increase in rental profit in comparison with September 30, 2012.”
Reuters reported that the “struggling Qatari property firm” posted a 40 percent drop in net profit for the first nine months of 2013.Barwa, 45 percent owned by state real estate firm Qatari Diar, received financial support in June when Diar bought its assets for $7.1bn.
Shares in Barwa are down 8.4 percent this year, the agency reported.
Focus area
The company said in its filing to the bourse that Barwa Real Estate Group is now focusing on the completion of some deals including the selling of some assets to Qatari Diar as well as the selling of a land in Lussail area.
Those deals are expected to have great positive impact on the group’s current and future results.
The company hopes it will positively reflect on the reduction of financing debts, in addition to helping the Group to complete its ongoing developments and look for new investment opportunities with high profit.
This will help the company achieve sustainable growth strategy and bring in better returns for shareholders, the QE filing noted.
The Peninsula
