Sorouh (SOROUH) financial statements released, just reviewing them now. Will update post with summary shortly. Press release in next post.
Sorouh 2008 FY Net Profit AED 1.784 billion
Sorouh 2008 M9 Net Profit AED 1.813 billion
Sorouh 2008 Q4 loss of AED 29 million (my calculation)
Looks like Abu Dhabi property was not so profitable in Q4 2008. Aldar results released last night saw their net profit fall 84% to just AED 85m. Sorouh shares are down 1.7% to 2.94 in the first 20 minutes of trading this morning.
[edit] Updated post with results summary - not a loss for Q4 after all [/edit]
[edit] Note that Q4 was a profit for Sorouh not a loss due to inconsistent comparison - Sorouh headline figure is before effect of Minority Interests, my original calculation used M9 figure after allowing for Minority Interests. I wasn't the only one to make that error, Reuters did too . [/edit]
EPS figures calculated from Net Profit / 2,500,000,000 shares outstanding. SOROUH share price as of 29 Jan 2009 was 2.99 dhs, so 2008 estimated PE is about 2.99 / 0.08 = 37.4, based on Q4 earnings, which is almost double that of Aldar's (Aldar Q4 results yesterday) but for 2008 FY, PE estimate is 2.99 / 0.74 = 4.0, which is much more in line with the rest of the market (and would look like a bargain at that level under normal lcircumstances). The question is, do you think Q4 figures indicate what Sorouh is likely to do throughout 2009? In which case a share price of 2.99 might still be too high. Or will Sorouh recover and get back to the profits of AED 700-800 million dhs seen in the second and third quarters of 2008?
ADX 29 January 2009 (am):
(SOROUH) Sorouh Real Estate reports full year growth 42% in 2008 despite toughening Market conditions
(SOROUH) Result of Sorouh Real Estate board meeting
(SOROUH) Sorouh Real Estate discloses annual preliminary financial results for 2008
All's well at Sorouh for 2008 then, according to this press release. Never mind the loss for Q4. Was that just a small blip then and Sorouh will continue to be profitable in 2009 or was Q4 2008 an indicator of future earnings? The current price of Sorouh shares indicates the market is not as "confident of the long-term outlook" for Sorouh as the boss is.
Press Release 28 January 2009:
Sorouh Real Estate PJSC reports full year growth despite toughening market conditions
Net profit up 42 per cent to AED 1,784 million (2007: AED 1,257 million) on revenue of AED 3,723 million (AED 2,321 million)
Abu Dhabi, UAE: Sorouh Real Estate PJSC (SOROUH), one of Abu Dhabi’s leading master-planners and developers, today announced a 42 per cent rise in net profits to AED 1,784 million (AED 1,257 million) for the year to 31 December 2008, on revenue up from AED 2,321 million to AED 3,723 million. The net profit represented earnings per share of 74 fils (50 fils per share) and was generated from operating activities, with no asset revaluations.
The company reported a growth in total assets of 135 per cent to AED 17 billion at 31 December 2008 (AED 7.2 billion), with net asset value up 33.5 per cent to AED 5,958 million (AED 4,463 million). Liquid funds increased from AED 1.4 billion to AED 6.8 billion, as a result of cash collection from sales and rental income, and funds raised through the issue of an award-winning asset-backed Sukuk during the third quarter of 2008. The company said that it remained positive about the long term outlook of the Abu Dhabi real estate market and the company’s strong balance sheet.
Abubaker Seddiq Al Khouri, Managing Director of Sorouh, said: “We were pleased to meet full-year expectations, despite the challenging global picture in the last quarter of 2008. We remain confident that we are positioned as positively as we can be for 2009. Sorouh strengthened its cash position in 2008 to ensure we have the necessary liquidity in place for the coming year and beyond. We are taking a prudent approach to the deployment of those reserves in 2009.”
Mounir Haidar, Sorouh’s Chief Executive Officer, said: “During 2009, we will focus on the on-time construction of Sorouh’s projects, which saw significant progress in 2008. We accept that 2009 will be slower than 2008, given the global financial situation, but we remain confident of the long-term outlook for Abu Dhabi and for Sorouh.”
Cost of revenue, which were related to cost of land plots, attributable cost of infrastructure work and lease expenses, increased to AED 1,426 million (AED 1,001 million), while general and administrative expenses rose from AED 165 million to AED 340 million, due to the company’s expansion, consultancy work and including expenses related to subsidiaries. Sales and marketing expenses also rose, from AED 100 million to AED 311 million, due to the rise in sponsorships, communication expenses and sales commission on newly-launched projects. Bank borrowings decreased from AED 233 million as at 31 December 2007, to AED 220 million as at 31 December 2008.
Sorouh posted a Q4 loss according to Reuters (and Arabian Business, and I expect Gulf News, Emirates Business, The National, Khaleej Times AMEinfo, Zawya, etc later today as they reprint the press release, Reuters report, or a variation), and Sharewadi at first blush. But now I think Sorouh posted a Q4 profit, albeit a small one. Should we be asking companies for a Profit or Loss Statement rather thant a Profit & Loss Statement ? Here's why:
Sorouh 2008 FY Net Profit AED 1.784 billion
Sorouh 2008 M9 Net Profit AED 1.737 billion
Sorouh 2008 Q4 Net Profit AED 47 million (my calculation)
Sorouh 2008 FY Net Profit due to Shareholders AED 1.858 billion
Sorouh 2008 M9 Net Profit due to Shareholders AED 1.813 billion
Sorouh 2008 Q4 Net Profit due to Shareholders AED 45 million (my calculation)
The Sorouh press release headline figure is AED 1.784 billion Net Profit and my initial calculation (and I presume Reuters) did not check if Minority Interests were included or not. The confusion would of course not arise if companies provided proper Income Statements for both FY and Q4 at the same time (and at the same time as their press release - Sorouh at least did that ... perhaps by default since the press release is dated yesterday but wasn't sent until today). Heck, I'd be happy if companies at least sent out FY statements and balance sheets - at least then I could do the calculations myself. But my requests mostly go ignored .
Anyway, here I sit with face positioned ready for egg. What have I done wrong in my calculations? ...
First post updated with summary, also comments about balance sheet in these reports:
Abu Dhabi-based Sorouh Real Estate (SOROUH) posted a 29 million dirham ($7.90 million) surprise loss in fourth-quarter, due to rising finance costs.
The company said it posted an "unrealised loss" on financial assets of 35 million dirhams for the year and that it had 117 million dirhams in exposure to equities through hedge funds.
The company's full-year profit rose to 1.784 billion dirhams, compared with 1.257 billion dirhams in 2007, Sorouh Real Estate said in a statement, without giving quarterly data, which Reuters calculated from previous financial statements.
Analysts forecast of the company's fourth quarter profit ranged from 376.08 million dirhams to 400 million dirhams, according to a Reuters survey last month.
Sorouh Real Estate earned 1.81 billion dirhams in the first nine months of 2008 and 483.91 million dirhams in the fourth quarter of 2007.
Mounir Haidar, Sorouh's chief executive officer, said in a statement that 2009 would be slower than 2008 but that it was confident of long-term prospects after the group posted a surprise loss for the last quarter of 2008.
"We accept that 2009 will be slower than 2008, given the global financial situation, but we remain confident of the long-term outlook for Abu Dhabi and for Sorouh," he said.
Abubaker Seddiq al-Khouri, managing director, said: "We remain confident that we are positioned as positively as we can be for 2009. Sorouh strengthened its cash position in 2008 to ensure we have the necessary liquidity in place for the coming year and beyond."
Well there you go. I'm sure there's a misprint though, shouldn't it have said "... inaccurately reported a Q4 net loss, which however was correctly reported by sharewadi.com, for Sorouh ..." ?
Press Release 29 January 2009:
Sorouh Real Estate PJSC: Clarification statement regarding 2008 financial results
Abu Dhabi, UAE: Following initial reports earlier today on Reuters and Bloomberg, which both inaccurately reported a Q4 net loss for Sorouh Real Estate PJSC (SOROUH), the company would like to make the following clarification statement.
Sorouh Real Estate PJSC made a net profit of AED 46 million in Q4 2008, which contributed to the full year net profit of AED 1,784 million, which represented a 42 per cent growth over the 2007 net profit of AED 1,257 million.
Sorouh is proposing to pay out a 12% cash dividend. That will cost them AED 312m out of AED 1.86 billion profit, a payout ratio of about 17%. Dividend yield as of yesterday's AED 2.20 close is about 5.4%. Decent enough .
AGM date is Wednesday 18 March 2009
Sorouh 18 February 2009:
Date: 18 February 2009
Reference: S-HO/-09-LGL-L-032
Abu Dhabi Securities Exchange
Mr. Khalid Khalfan Al Suwaidi
Head of Listed Companies Department
P.O. Box: 545001
Abu Dhabi, United Arab Emirates
Subject: Sorouh Board Meeting of 18 February 2009
With Reference to the above, kindly note that the Board of Directors of Sorouh Real Estate has convened today, Wednesday, 18 February 2009 at 12:00 p.m. and has adopted the following resolutions:
1. The Board certified the audited financial statements for the year ended on 31 December 2008.
2. The Board approved setting the date of the Ordinary and Extraordinary General Assembly Meetings for 18 March 2009 and approved their respective agendas.
3. The Board proposed a dividend of 12 fils per share for the financial year ended on 31 December 2008.
With Kind Regards,
Akram Abu El Huda
Executive Director
Legal Department
12% cash dividend approved - dividend yield about 5.5% on yesterday's share price of AED 2.18
25 March 2009 - last trading day for dividend eligibility
26 March 2009 - Sorouh ex-dividend date
29 March 2009 - dividend record date
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
. [/edit]
.
...
.