Alpha Dhabi Holding has revealed a group net profit of AED11.1 billion ($3 billion) for the nine-month period concluding on September 30, 2024. The operating net profit of AED7.5 billion ($2 billion) marks a 83 percent increase compared to the same timeframe last year, underscoring the vigorous activities that Alpha Dhabi has undertaken across its core business sectors.
These robust financial results reflect the holding company’s strategic initiatives across key verticals and its unwavering commitment to enhancing shareholder value. Significantly, the growth observed across various sectors stems directly from strategic acquisitions and investments made since 2022.
The Group achieved revenue of AED44.2 billion ($12 billion), representing a 36 percent year-on-year increase, with substantial contributions from different business divisions: AED18.5 billion from Industrial, AED13.2 billion from Real Estate, AED7.6 billion from Construction, and AED4.9 billion from Services and Others.
Strengthened financial position
Alpha Dhabi has also strengthened its financial standing, reporting total assets of AED170.4 billion, a 21 percent increase year-on-year. The company’s cash balance stood at AED23.9 billion, while total equity reached AED93 billion, highlighting the robustness and flexibility of its financial position.
Mohamed Thani Murshed Ghannam Al Rumaithi, chairman of Alpha Dhabi Holding, indicated that the year 2024 has been marked by significant progress for Alpha Dhabi, noting that the organization has made remarkable strides across essential areas. He emphasized that the strong financial performance this quarter, with a group net profit soaring to AED11.1 billion, epitomizes their relentless growth trajectory.
Focus on future growth
Al Rumaithi also mentioned that their recent successes have been driven by strategic decisions made in previous years, including investments and acquisitions, which continue to yield beneficial outcomes. Looking ahead, he expressed a commitment to sustaining their momentum and maximizing growth opportunities in both new and existing sectors.
Strategic partnership with ADQ
In October 2024, Alpha Dhabi Holding successfully completed the sale of a 49 percent stake in its subsidiary, Alpha Dhabi Construction Holding (ADCH), to ADQ, the Abu Dhabi-based investment and holding company. Alpha Dhabi will retain a 51 percent ownership interest in ADCH, reaffirming its commitment to the construction sector through a strategic partnership with ADQ, as reported by WAM.
This collaboration combines the strengths and expertise of both organizations, further positioning ADCH as a leader in the industry and a significant contributor to growth in the Emirate. The agreement further marks a new era of innovation in the construction sector, leveraging the capabilities of both firms to enhance the leadership of Alpha Dhabi Construction Holding. Additionally, this partnership coincides with substantial investments in construction throughout Abu Dhabi, aimed at creating new housing options, generating jobs, and fostering economic diversification in the Emirate.
In August 2024, ADNOC Drilling Company and Alpha Dhabi Holding announced that their joint venture, Enersol, has reached an agreement to acquire a 100 percent equity stake in EV Holdings for approximately $45 million from the UK-based private equity firm Dunedin. The transaction’s completion is contingent upon securing the necessary regulatory approvals and final adjustments, after which the stake in EV Holdings will be formally transferred to Enersol.
Innovation in EV technology
By capitalizing on the EV technology center, which conducts research and development in the UK, EV Holdings boasts 116 patents and a proven record of launching new and innovative products. Over the upcoming two years, the company plans to roll out a robust pipeline of products leveraging its R&D capabilities, including pipeline visualization and software analytics.
Read more: Mubadala, Alpha Dhabi form $2.5 billion private credit joint venture
Expansion of stake in Gordon Technologies
Additionally, in June 2024, ADNOC Drilling and Alpha Dhabi Holding announced that their joint venture, Enersol RSC LTD, will acquire an extra 42.206 percent equity stake in Gordon Technologies for approximately $270 million, thereby becoming the majority equity holder. This $270 million consideration aligns with the valuation supporting the initial 25 percent stake acquisition announced in January 2024.
The acquisition is expected to be economically beneficial in terms of profitability, valuation multiples, cash flow generation, and dividend potential. The joint venture anticipates a free cash flow yield exceeding 10 percent for FY2023. Enersol is actively pursuing plans to acquire and invest in multiple businesses, fostering a growing ecosystem that enhances its market value and operational efficiency. Consequently, acquiring an additional stake in Gordon Technologies will enable Enersol to broaden its operational reach, solidifying its position as the leading provider of measurement while drilling (MWD) technology in the oil and gas sector. This technology captures critical information near the drill bit and relays data to the surface without disrupting normal drilling operations.
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