Sorouh 2009 Q3 Net Profit was AED 185 million according to financial statements on the ADX website. There's also a press release but it won't open for me.
Sorouh 2008 Q3 Net Profit was AED 760 million according to the same statement.
Revenue was down slight but Costs of Revenue were up significantly (almost double) which looks like the explanation for the plummeting profits. A similar story for the 2009 9M results.
ADX 29 October 2009 (am):
(SOROUH) Sorouh Real Estate issues press release on the 3rd quarter, 2009 financial results
ADX 29 October 2009 (am):
(SOROUH) Sorouh Real Estate discloses management report, balance sheet, and income statement on 3rd quarter, 2009 financial results
This is really really bad. I was expecting negative numbers, bun not that big. No wonder why there was a big selling during the last one month. Hopefully it will recover from now on, at least partially...
The current price is only aprox. 10% lower than the last 3 months high of 4.16.
Last edited by Prop on Thu 29 Oct 2009 09:38; edited 1 time in total
The comforting thing is the increase in porfits by 26% in 2009Q3 (AED187m) from 2009Q2 (AED148m). The main reason for the big decline from 2008Q2 is no plot sale during 2009Q3.
Another positive thing to note about Sorouh is its revenue recognition which I believe is on completion/handover of property. So, 2010 should see a big increase when their major projects (Sky and Sun Towers) at Shams (Reem Island) are delivered.
There's also a press release but it won't open for me.
It did - was just a bit slow ...
Press Release 29 October 2009:
Sorouh Real Estate PJSC Third Quarter Results 2009 Net Profit up 26% on Q2
Abu Dhabi - Sorouh Real Estate PJSC (SOROUH), the Abu Dhabi-based real estate developer, today announced its third quarter results for the period ended 30 September 2009.
Results Highlights
Revenues for the quarter were AED 1,351m (Q3 2008: AED 1,497m / Q2 2009: AED 978m). Revenues in the quarter were principally driven by the handover of villas at Golf Gardens and the recurring rental income of Sas Al Nakhl, Khalidiya Village and Al Oyoun. Revenues in the comparable period last year were predominantly land sales which have not been repeated in the current quarter.
Revenues for the first nine months were AED 2,664m (9M 2008: AED 3,190m).
Net profit for the quarter, excluding minorities, was AED 187m up 26% on Q2 (Q2 2009: AED 148m / Q3 2008: AED 765m). Net profit for the nine months period was AED 461m (9M 2008: AED 1,813m)
Earnings per share for the three month period were 7 fils (3M Q2 2009: 6 fils / 3M Q3 2008: 18 fils). EPS for the nine months were 31 fils (9M 2008: 73 fils).
These results are in line with the previous guidance and reflect the Company’s strategy to focus on delivery of existing projects, cash conservation and prudent management of operating costs.
The Company maintains a strong balance sheet with net assets as at the end of the third quarter 2009 of AED 6.1bn (Q2 2009: AED 5.9bn).
The Company retains AED 3.9bn of cash on its balance sheet. Total bank borrowings are AED 126m, representing a debt to equity ratio of 2%, (this excludes the outstanding amounts of the asset-backed Sukuk Certificates issued in the third quarter 2008 which is a non-recourse facility).
Developments Update
All of Sorouh’s Abu Dhabi developments remain on track with the core focus being on maintaining delivery schedules:
Golf Gardens is the first development being recognised to revenue and is making a substantial contribution to the quarter’s earnings.
The investment portfolio of Sas Al Nakhl, Khalidiya Village and Al Oyoun Village is now substantially leased and generating steady recurring income.
SHAMS Abu Dhabi infrastructure works are well underway. Earthworks are now finished, bridges substantially complete and essential infrastructure such as water and drainage are nearing completion. In addition, a number of sub-developers have started work and the amount of development activity has increased substantially across the site.
Sun Tower and Sky Tower, at the entrance to SHAMS Abu Dhabi on Al Reem Island, remain on track for delivery in mid 2010. Over fifty percent of the retail podium is now pre-leased.
The Gate Towers’ construction is on schedule and works are progressing above ground.
alghadeer’s customer optimisation plan is broadly complete with significant take up of the revised project and payment plans. The project is now progressing into the construction phase following the completion of the enabling works.
Management Appointments
During the period, Mr. Mounir Haidar resigned from his position as Chief Executive Officer to pursue other business opportunities. Mr. Abubaker Al Khouri will continue to lead the Company as Managing Director and Mr. Gurjit Singh has been promoted to Chief Operating Officer. Separately, Mr. Richard Amos joined as Chief Financial Officer. Mr. Amos has over 25 years experience in banking and finance and recently headed up the finance function at TDIC.
Abubaker Al Khouri, Managing Director of Sorouh, commented: “We are pleased to continue to report results in-line with previous guidance of quarter on quarter earnings improvement. This quarter, the handover of Golf Gardens and the increased recurring income from the rental developments of Sas Al Nakhl, Khalidiya Village and Al Oyoun Village have all contributed to earnings. In addition, we are making good progress with all our major developments; in particular, the award winning* Gate District on SHAMS Abu Dhabi is moving ahead on schedule, with the Sun & Sky Towers due for handover mid next year and the three Gate Towers now rising above ground.
“Whilst the real-estate market is likely to remain challenging in the near future we remain cautiously optimistic over signs that the market is stabilising, as the number of sales enquiries increase, especially in the secondary market. Sorouh is well placed to capitalise on the future success of Abu Dhabi. The scarcity of quality completed units coming on stream, means demand is likely to exceed supply for some years to come.”
EPS of 31 fils for 2009M9 means abotu 41.3 fils on an annualised basis. The closing price of yesterday (AED 3.83) indicates a P/E of 9.27. I think it is okay - not bad. But market is going to penalise it given the comparison against 2008Q3.
It also seems to me that DFM website (showing 2.66 up rather than down) and some brokerage online systems are not working properly, adding to more panic and perhaps unintended transactions.
Check the ESCA, DFM and ADX websites. Although if results are released after about 4pm, they don't usually get posted until the next morning.
If I get them in my inbox then I post them in the forum as soon as I see them. Otherwise sites like zawya.com and ameinfo.com are pretty quick with posting press releases. Reuters also fast for the bigger companies (check Google news). The SW news feed should pick up most of them.
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