Abu Dhabi, UAE — Eshraq Investments has posted a net profit of AED35.99 million ($9.79 million) for the second quarter of 2023, from a net loss of AED7.07 million in the similar period last year.
The total operating income surged by 2,446.7 percent to AED44.31 million from a loss of AED1.89 million in Q2 2022.
To date, Eshraq has sold seven land plots, representing total 27 percent of its existing land bank by book value for a total sale consideration of AED208 million.
The company said it will continue to progress its land sale program over the next three years and generate revenue by monetizing non-revenue generating land assets through the sale or engagement of partners to develop the land bank and its subsequent sale.
Eshraq will continue to explore more such opportunities to achieve cash flows from all its assets.
At the end of the second quarter, Eshraq purchased an additional 108 million ordinary shares with an aggregate value of AED55.5 million at an average price of 0.5144 per share. The share buyback has resulted in a gain to shareholders of AED46.37 million on account of share buyback at discount to Eshraq’s book value as of end of Q2 2023.
In May, the shareholders also approved via a special resolution the renewal of Eshraq’s plans to cross-list its shares on the Saudi Stock Exchange (Tadawul).
Jassim Alseddiqi, Eshraq’s Chairman, said, “We remain on track with our three-year plan to divest non-income generating assets and deploy the proceeds towards profitable investments that deliver value to shareholders.”