Sorouh’s net profit rises to AED 557m in first half of 2007 Assets increase by 39%

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Abu Dhabi 29 July 2007 - On the second anniversary of the company's establishment, Sorouh Real Estate P.J.S.C. announced today a net profit of AED 557 million for the first half of 2007. This is equivalent to earnings per share of 22 fils. Net profit from April to June 2007 amounted to AED 443 million or 18 fils per share. Revenue of AED1.1 billion during the six months to June 2007 was the key driver behind the net profit. The revenue and profit have been driven primarily by the high level of land sales achieved by the company. None of the profit is attributed to revaluation of the company's properties. Cash inflows from sales to date remained strongly positive and have helped to maintain the company's net cash at AED1.3 billion. This strong cash position will be utilized in developing the infrastructure work of the Company's projects and in various relevant investment domains to secure sustainable growth projected by Sorouh's business strategy. During the quarter, and as a result of Resolution No. 8 by His Highness Sheikh Mohamed Bin Zayed, Crown Prince of Abu Dhabi & Chairman of Executive Council, Sorouh acquired the freehold title of its flagship project, Shams Abu Dhabi. At the same time, Sorouh has offered freehold title to all qualifying clients who have purchased land on Shams. This move is a further demonstration of Sorouh's commitment to the success of this massive development. Sorouh has continued to make significant progress in the development of Shams Abu Dhabi. where infrastructure work is on schedule. Its other projects namely, Sky Tower, Tala Tower, Golf Gardens, Sas al Nakhl, Abu Dhabi Aviation, and Saraya are also on time. Construction work to the value of AED 375 million was performed on these projects during the quarter. Total assets of the company grew to AED 6.1 billion - an increase of 39% from December 2006 level of AED 4.4 billion. Net assets grew by 8% over the same period. The Chairman of Sorouh, Mr. Saeed Al Ghafly, expressed his satisfaction with this performance. "We have continued to deliver in all areas of the company's business. Our projects are experiencing buoyant demand from developers and end users and we are on target to meet our commitment to our clients. Sorouh's management is focused on three fundamental core areas: customer centricity, commitment to deliver on time and responsibility towards communities to develop balanced and sustainable communities. These objectives will undoubtedly help Sorouh and its earnings to grow".

 

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