Abu Dhabi - Mubasher: Leading investment company based in Abu Dhabi, Waha Capital has reported a preliminary net profit of AED 1.73 billion for 2014, marking a massive 466% year-on-year leap from AED 306.4 million in 2013, and recording the highest earnings in the company’s history.

Meanwhile, the investment firm reported a net profit of AED 142.1 million during the fourth quarter of 2014, up from AED 75.6 million a year earlier, recording a significant increase of 88%. 

Established in 1997, Waha benefited from a strong performance across its principal investments, with AerCap Holdings NV providing the largest contribution to earnings growth. Other investments also performed well, with the Company’s capital markets division delivering above-market returns from its credit and equities portfolios.

Commenting on the company’s record results, Waha Capital Chairman Hussain Jasim Al Nowais stated: “Building on our strong performances in recent years, Waha Capital has delivered an exceptional year, in which we have produced a 51% return on equity. We are reaping the benefits of taking a patient, long-term view on our investments, while focusing firmly on value creation and prudent financial management. The company is in excellent shape to take advantage of the attractive investment opportunities we see emerging in the MENA region.”

“Waha Capital is dedicated to delivering shareholder value, and this year’s excellent results are a testament to that. The company is now primed to drive forward its strategy for growth,” he added.   

Waha Capital’s assets surged by 89% as at December 31, 2014, from AED 5.2 billion a year earlier. “This increase reflects the performance by investments and company activity, including the shareholder value that was unlocked by AerCap’s acquisition of International Lease Finance Corporation (ILFC) in May, and Waha Capital’s subsequent hedging and financing transactions on AerCap shares”, Waha said in its filing to the Abu Dhabi Securities Exchange (ADX), adding that it deployed funds in new acquisitions within the healthcare and energy sectors as well as in the capital markets business.

In H2-14, Waha divested three million shares and entered into hedging and financing transactions on its entire remaining stake in Aercap -- approximately 26.8 million shares --  aiming to reduce risk and lower its cost of capital.

“The transactions effectively locked in the value of Waha Capital’s stake in AerCap at an average minimum price of $40.04 per share, and up to an average cap price of $57.23 per share, subject to certain adjustments. They also generated aggregated funding of just over AED 4 billion for Waha Capital to partially repay existing debt and fund new investments”, the statement revealed.