Waha posts $3m Q2 loss on provisions.Abu Dhabi's Waha Capital swung to a second quarter net loss of Dh12.4 million ($3.4 million), the company's financial statement showed, as provisions on assets and loans weighed on the balance sheet.
Waha, whose shareholders include Abu Dhabi Abu Dhabi (ä`b thä`bē, zä–, dä–), Arab. Abu Zabi, sheikhdom (1995 pop. 928,360), c. government entities, posted the loss for the three months to June 30, against a net profit of Dh6 million in the second quarter of 2011, said a report in our sister publication the Gulf Daily News.
'The decline was driven mainly by a one-off gain on sale of investment in first half of 2011 and provisions taken on some assets in the first half of this year,' the statement said.
Waha booked Dh16 million as provision for doubtful loans and receivables and Dh7.3 million towards impairment of operating lease Operating Lease
A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset.
An operating lease is not capitalized it is accounted for as a rental expense. assets in the first half of this year, the statement said.
The firm's operating income Operating Income
The profit realized from a business' own operations.
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. rose to Dh33.1 million in the second quarter compared to Dh21.8 million in the year-ago period, according to the statement.
But net income for the first six months of the year dropped 90 per cent from the corresponding period in 2011 to Dh3.5 million.
Waha saw an increase in its holding of aircraft lessor AerCap to 22.2 per cent from 21.3 per cent after it decided against participating in a share repurchase Share Repurchase
A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. scheme.
'Waha Capital's shareholding may increase further if it decides not to participate in this year's second repurchase programme,' the statement added.
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