Alpha Dhabi delivers strong performance with H1 revenue of AED 29.3 billion and net profit AED 6.7 billion

(MENAFN- Weber Shandwick) Mohamed Thani Murshed Ghannam Al Rumaithi: "Alpha Dhabi has continued to build a resilient and forward-looking portfolio deep into 2024. With our sights firmly set on the future, our portfolio is geared towards catalysing opportunities that will enable and encourage enterprises to transform and adapt through innovation and sustainability."

Eng. Hamad Al Amer: “Alpha Dhabi continues to demonstrate significant performance across its portfolio by adding strategic investments in high growth industries that are shaping the future. We’re uniquely poised to ramp up our investment activities and align with growth opportunities that we know will add value to our portfolio and deliver impact whenever, and wherever we operate.”

• Half-year financial performance reflects the pace of strategy execution across key industries with revenue soaring to AED 29.3 billion, a 32% increase YOY, gross profit at AED 6.4 billion, a 38% YoY increase, while net profit from operations surged to AED 5.1 billion, a 92% increase; and
• Investments across diverse, future-centric sectors remains one of Alpha Dhabi’s key differentiators as a leading regional investment holding company.

Abu Dhabi, UAE; 01 August 2024: Alpha Dhabi Holding PJSC (“Alpha Dhabi” or “the Group”), one of the fastest-growing investment holding companies in the MENA region, listed on the Abu Dhabi Securities Exchange (ADX: AlphaDhabi), has announced a group net profit of AED 6.7 billion for the six-month period ending 30 June 2024.

Alpha Dhabi has posted remarkable H1 2024 financial results, with revenue soaring to AED 29.3 billion, representing 32% increase from the same period last year. Net profit from operations also surged to AED 5.1 billion, marking 92% year-on-year increase, while gross profit was at AED 6.4 billion, a notable 38% YoY increase.

Total gains in the first half of the year at AED 2.0 billion, were lower than corresponding period in 2023 when the group de-recognized PureHealth. The reduction in gains, together with the adoption of Corporation Tax in the UAE in 2024, contributed to a decrease in group net profit, overall.

The results reflect the holding company's strategic implementation across key verticals and its firm commitment to generating enhanced shareholder value. More specifically, the results demonstrate that strategic investments made across diverse, future-centric industries remains one of Alpha Dhabi's key differentiators as a leading regional investment holding company.

The first half of the year saw strong performance across all business segments, due to the impacts of strategic investments. The strength of the company's portfolio contributed significantly with industrial contributing 41%, real estate 30%, construction 17%, in addition to energy, hospitality, and climate capital representing 12%.

Alpha Dhabi has also continued to reinforce its balance with half-year total assets at AED 155.0 billion while the company's cash balance was at AED 20.7 billion. Half year total equity was at AED 81.2 billion reflecting the depth and resilience financial position.

His Excellency Mohamed Thani Murshed Ghannam Al Rumaithi, Chairman of Alpha Dhabi Holding, said: "Alpha Dhabi has continued to build a resilient and forward-looking portfolio deep into 2024, delivering on what we set out to do at the beginning of the year. As always, our aim is to do well, and to do good - meaning we strive to deliver exceptional performance and to create long-term residual value across the UAE economy for the benefit of its people. This is exactly what we achieved in the last six months with our increased revenue for this period last year, showing full well the strength and success of our business. Now, with our sights firmly set on the future, our portfolio is geared towards catalysing opportunities that will enable and encourage enterprises to transform and adapt through innovation and sustainability."

Eng. Hamad Al Ameri, CEO of Alpha Dhabi Holding, said: “Alpha Dhabi continues to demonstrate significant performance across its portfolio by adding strategic investments in high growth industries that are shaping the future. Yet again, we’ve underscored that the fundamentals of our business are strong, and we’ve also made meaningful partnerships and captured exciting opportunities. Our net profit from operations surging by 92% to AED 5.1 billion, is a firm reflection of how we are deepening our presence in key markets and sectors. As we look towards the rest of the year, we’re uniquely poised to ramp up our investment activities and align with growth opportunities that we know will add value to our portfolio and deliver impact whenever, and wherever we operate.”

Alpha Dhabi’s diverse portfolio has been a significant driver of its continued growth, with all segments delivering notable performance and contributing to the increase in profit.

Growth of the joint venture with ADNOC Drilling
The Group's joint venture with ADNOC Drilling Company PJSC (ADNOC Drilling), named 'Enersol', agreed to acquire a 51% equity stake in NTS AMEGA (“NTS”) for a consideration of approximately $58 million (excluding transaction fees, expenses and completion adjustment), making Enersol the majority equity holder. This represents the second completed transaction, with a strong pipeline under various stages of diligence set to follow.

Champion the healthcare sector
PureHealth delivered a strong performance in the first half of 2024 with consolidated revenue increased by 53% YOY to AED 12.5 billion, primarily driven by the growth in the hospitals segment, which contributed AED 9.6 billion of revenue with EBITDA reached AED 2.2 billion in 1H 2024, a 15% increase over 1H 2023.
PureHealth has partnered with the Supreme Council for Motherhood and Childhood to enhance mental health initiatives across Abu Dhabi. The collaboration reflects PureHealth's commitment to providing accessible, holistic health services, advancing Abu Dhabi’s comprehensive mental health strategy, and improving community health outcomes. Additionally, PureHealth and subsidiary Abu Dhabi Health Services Company (SEHA), have partnered with Cincinnati Children's Hospital Medical Center to establish a paediatric centre of excellence, further reinforcing Abu Dhabi’s position as a leading healthcare destination.
Ardent Health, an investment of PureHealth, successfully completed its IPO in New York Stock Exchange, reinforcing PureHealth's status as a leading healthcare investment platform. The development is in line with the group's strategy to diversify its portfolio and extend its international reach.

NMDC is relentlessly pushing forward
National Marine Dredging Company (NMDC) has been awarded new projects with a total award value of AED 8.4bn. This includes several engineering, procurement and construction projects, such as one with Technip Energies and JGC Corporation for the lower-carbon Ruwais LNG project awarded by Abu Dhabi National Oil Company (“ADNOC”) at project size of AED 4,040m. Another EPC project is expected to be completed in 30 months at AED 2,399 million. This is in addition to a new pipeline and associated facilities EPC project for the next phase of the Sales Gas Pipeline Network Enhancement Program (Estidama) awarded by ADNOC Gas at a value of AED 936 million. NMDC Group has a record backlog which stood strong at AED72.6 billion, accounting for nearly six times their first-half revenue annualised and demonstrating its solid presence in the market.

Bolsters Group's leading position in the real estate sector
Aldar Investment Properties (AIP), the largest real estate management company in Abu Dhabi and subsidiary of Aldar Properties PJSC (Aldar), successfully issued its second USD 500 million green sukuk as part of its USD 2 billion Trust Certificate Issue Programme established in 2023. The issue achieved the tightest credit spread ever priced by Aldar and was 4 times oversubscribed by regional and international investors. Aldar tendered to buy back the sukuk maturing in 2025, offering existing investors an opportunity to invest in the new issuance. Proceeds of the sukuk will be used in accordance with Aldar’s Green Finance Framework.

Aldar Properties (‘Aldar’), and DP World have signed a strategic agreement where Aldar will fund and develop a 1.55 million sqft (144,000 sqm) Grade A logistics park at National Industries Park (NIP) in Jebel Ali, Dubai. This comes at a time when Aldar has confirmed a record backlog of AED 39 billion, alongside marking strategic entry to Dubai commercial real estate segment with AED 1.8 billion commitment.

Cutting edge technology in support of the UAE food security capabilities
Mawarid Holding Investment (“Mawarid”) and Plenty Unlimited Inc. (“Plenty”) entered into an exclusive, multi-year, region-wide partnership to bring locally grown fresh produce to countries across the Gulf Cooperation Council (GCC). The joint venture will invest more than AED500 million (US$130 million) into the partnership’s first project in the GCC – an indoor vertical farm in Abu Dhabi, designed to grow more than 2 million kilograms of strawberries annually. The joint venture plans to develop up to five farms in the next five years, which would require investing up to AED2.5 billion (US$680 million) and bringing thousands of direct and indirect employment opportunities to the region.

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