Inovest reports nine-month net profit of US$5.2 million
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
Inovest yesterday reported a 41 per cent decrease in its third-quarter profit, hurt mainly by a relative slowdown in other income, real estate sales vis a vis an improvement in general expenses during the same time. Nine-month net profit rose by 4 pc.
Third-quarter consolidated net profit attributable to the parent shareholders was US$0.42 million in comparison to US$0.71 m for the same quarter of last year.
Basic and diluted earnings per share amounted to US cents 0.14 as compared to earnings per share of US cents 0.24 for the same period in 2019.
Net operating profit decreased by 53pc to US$0.329 m compared to US$0.696 m for the same period last year.
Consolidated operating income for the quarter decreased by 21pc to reach US$3.00 m in comparison to US$3.78 m for the same quarter of 2019.
For the nine months, the consolidated net profit attributable to parent shareholders was US$5.21 m, representing a 4pc increase as compared to US$5.01 m for last year.
Basic and Diluted Earnings Per Share of the parent company amounted to US cents 1.75 as compared to US cents 1.68 in 2019.
This increase is the outcome of a gain on a settlement with an investor, reversal of a provision and material decrease in the operating expenses netted off against share of losses resulted from a financing facility settlement at an associate company level, a decrease on capital gain from sale of properties and a decrease in revenue from contracting activities.
Consolidated net operating profit decreased by 110pc, reaching a loss of US$0.42 m in comparison to a profit of US$4.10 m for the same period of 2019 due in large to the aforementioned reasons, with the exclusion of the provision reversal.
Operating income dropped by 44pc from US$13.67 m to US$7.60 m. Operating expenses were reduced, standing at US$8.02 m for the third quarter of 2020 in comparison to US$9.57 m for 2019, reflecting a decrease of 16pc. This decline stems from the reclassification of labour costs reported by Inovest’s contracting arm last year as well as the Group’s continuing efforts and direction to control expenses.
“The focus within the coming months will be to continue the improvements achieved within our investment portfolio and to harness opportunities which will yield solid returns in the near future. Ultimately, as a Group, we seek to cement a solid, Shariah compliant, investment model build upon foundations which ensure the agility and strength to overcome challenges and ensure the sustainability required to achieve our long term strategic goals,” said Inovest chairman Dr Omar Al Mutawa.
“Despite current market conditions, we continue to assess opportunities and to undertake a risk-balanced review of those that fall within our business plan and which will achieve our strategic mandate despite new economic challenges that may arise. In times such as these, we are extremely grateful for the wise leadership of our beloved Kingdom of Bahrain, and for their continued support and guidance of the private sector throughout such unprecedented times,” said Inovest CEO Yasser Al Jar.