Nakheel turns back into black in Q1

Nakheel generated a net profit of Dh362 million in the first quarter of 2012 compared to a loss of Dh36 million in Q1 2011 on increased revenues. The property developer’s revenues jumped 159 per cent to Dh1.352 billion as compared to Dh522 million for the same period last year driven by the handover of properties in a number of Nakheel projects. The company said in a statement issued today on the preliminary financial results that other business segments including retail and leasing also contributed positively to the results. The company gained favourably from the various operating income segments that continue to be the core area of focus. It added that effective cost control measures implemented by Nakheel resulted in further reducing the overheads by Dh22 million compared to the corresponding period in 2011. Net assets of the group increased by Dh1 billion to Dh24.5 billion mainly due to the achieved profit and additional equity funds received during 1Q 2012. The company said the financial performance is reflective of the commitment made by the Board of Directors of Nakheel to implement a sustainable business strategy for the medium to long term and largely due to better cost and cash management. It added that the positive results of Q1 2012 following from the robust financial results achieved in the year 2011 continue to indicate a relatively more stable real estate market in Dubai where Nakheel is a dominant player and will continue to strengthen its position with the passage of time.