(ADNH) Abu Dhabi National Hotels discloses summary financial results for 3rd quarter, 2008
(ADNH) Abu Dhabi National Hotels discloses 3rd quarter, 2008 financial results
ADNH summary results released during trading hours, financial statements released after market closed. Abu Dhabi National Hotels (ADNH) profit figures for third quarter 2008 are (EPS annualised in brackets):
EPS figures calculated from Net Profit / 1,000,000,000 shares outstanding.
ADNH share price as of 30 October 2008 was 4.66 dhs, so 2008 estimated PE is about 4.66 / 0.04 = 116.5, based on Q3 earnings, which is over 10 times the average market PE of about 10 . 2008 PE estimate based on M9 earnings is 4.66 / 0.39 = 12.0, which is a little higher than the market average. The third quarter is the most dismal seen in the past couple of years for ADNH. There was steady growth in core revenue and gross profit from hotel related activities but ADNH were hammered on their investment portfolio.
Management discussion and analysis report on the company financial results for the period 1st Jan 2008 to 30th Sept. 2008
ADNH recorded a Net Profit of AED.291.5 million for the period from 1st January 2008 to 30th Sept. 2008 compared to AED.327 million for the same period of last year, down by 11.1 % year on year.
The hotels division's performance was excellent. However, nonoperational profits decreased dramatically compared to last years results as local and foreign investments made a loss combined with lower bank interest rates on deposits, due to the International Financial Crisis, reducing interest income.
Results Highlights:
International Hotels' Net Profit reached to AED.217 million compared to AED.163 million for last year, a growth of 33%. Occupancy rates were 80% compared to 78% and Average Room Rate was AED.925 compared to AED.719 for last year. This performance is expected to continue and strengthen through year-end.
Al Diar Hotels' Net Profit reached to AED.78 million compared to AED 56 million of last years with a growth of 39%. Occupancy rates were 87% compared to 78% and average room rate was AED.565 compared to AED.447.
Catering Operations' recorded a Net Profit of AED.51.4 million compared to AED.61.4 million last year, a decrease of 16.2%.
Al Ghazal Transport, recorded Net Profit was of AED.4.5 million compared to AED. 12.6 million for last year, a decrease of 64.3% due to costs associated with the franchise taxi operation startup. However, the other operations recorded a Net Operating Profit of AED 22.7 million, compared to AED 15.75 million last year, an increase by 44%.
Interest on Fixed Deposit, the recorded interest revenue is AED.11.67 million compared to AED.19.4 million for last year, decrease of 39.85% due to a decrease in interest rates. The Company does not keep term deposits in foreign Banks.
Foreign Investments Portfolio, The original amount invested in the foreign security funds managed by funds manager was AED. 165 million (approximately US$ 45 million). The portfolio suffered a loss of approximately AED 30 million (-12%) by the end of Sept. 2008. The market value of this portfolio was approximately AED .222 million at the end of the same period due to the previous three years continuous positive performance.
Local Portfolio, The Company invested an total of AED 20 million in NBAD growth fund and AED 25 million in ADCB Nokhita fund. The recorded loss for both funds at the end of Sept. 2008 was AED 40 million (-38%).
The market value of the funds at the end of Sept. 2008 was AED.65 million due to the previous years positive performance.
The total losses of the foreign and local portfolios will affect the Company's net profit at the end of the 3rd quarter by AED. 70 million.
Dividends: The Company received dividends from investments in Local Shares amounting to AED 19.25 million compared to 15.5 million last year, an increase by 24%.
Depreciation, the depreciation expenses went down to AED.32.4 million compared to AED.33.4 million for last year, a 2.9% difference.
Strategic Issues:
The JW Marriott Hotel project has started and construction is underway. The project comprises a five star hotel, villas and serviced apartments.
The structural design of Saadiyat Island Hotel & Resort has commenced and Park Hyatt appointed as operator.
The structural design of ADNEC five star hotel has commenced.
The construction of Jumeirah Beach Sofitel Hotel with a capacity of 453 rooms and units is now in its final stage and the internal finishing and decoration will commence shortly, in preparation for an early second quarter 2009 opening.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
Disclaimer: Investing in stocks is risky, you can lose some or all of your money and/or other assets. Anything you read on this site should be regarded as the opinion of the author only and is not to be taken as advice to buy, sell, or hold stocks and/or any other investments. Seek professional advice and do your due diligence before making investment decisions. In particular, do not assume anything you read on this site is correct or accurate. You should accept that only you can be responsible for any investing decisions you make.
2008 FY
FAQ
Search
Print-friendly
Profile
Private messages
Register
Log in
. 2008 PE estimate based on M9 earnings is 4.66 / 0.39 = 12.0, which is a little higher than the market average. The third quarter is the most dismal seen in the past couple of years for ADNH. There was steady growth in core revenue and gross profit from hotel related activities but ADNH were hammered on their investment portfolio.
