Eshraq Investments posts highest ever quarterly profit of $129 million

Abu Dhabi’s Eshraq Investments posted its highest quarterly profit after reaching a deal that made the Goldilocks fund, managed by Shuaa Capital, its top asset in the quarter.

The company announced a profit of 474 million dirhams ($129 million) in the third quarter of 2022 compared to 17 million AED in the third quarter of 2021.

Profit for the first nine months of 2022 was AED481 million, compared to AED35 million in 2021.

The third quarter financial statements showed that the company’s total assets stood at AED2.88 billion, with total shareholders’ equity of AED2.6 billion.

This figure was up from total assets of AED 1.69 billion in the third quarter of 2021, when total equity was AED 1.36 billion.

Eshraq sold three plots during the third quarter for AED160 million, according to a statement to the Abu Dhabi Stock Exchange (ADX), and also implemented a capital reduction program to offset accumulated losses, which reached AED 1.030 billion as of June 30, 2022.

A capital reduction to offset all accumulated losses, followed by a capital increase, leaves the company’s total issued capital at AED2.82 billion in the third quarter of 2022, the company said.

Eshraq has completed its acquisition of the Goldilocks Fund through the issuance of a new AED1.385 billion share, also subscribing for additional Goldilocks shares through the transfer of several of its financial assets, investments and liabilities, the statement said, adding: “Following the transaction, Goldilocks has become the company’s primary asset, with the asset mix expected to provide greater stability and mitigation of market volatility risk, as well as improved returns.

Chairman Jassim Alseddiqi said, “We are confident that we can maintain and build on this momentum to strengthen Eshraq’s financial performance and improve operational efficiency, all with the aim of creating long-term value for our shareholders.

(Writing by Imogen Lillywhite; editing by Brinda Darasha)

imogen.lillywhite@lseg.com