INOVEST reports fourth quarter, FY 2021 profits

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

INOVEST yesterday announced 2021 financial results, reporting a swing to profit in the fourth quarter, helped primarily by a reversal in provisions associated to a legal matter which was settled in its favour.

Fourth-quarter results

Fourth quarter consolidated net profit attributable to the parent shareholders was US$2.41 million compared to a net loss of US$ 182 thousand for the same quarter of last year.

Earning Per Share was US cents 0.81 compared to Loss Per Share of US cents (0.06) in the year-ago quarter. Net operating losses increased by 13% from US$ 1.37 m to US$ 1.54 m in Q4, 2021, hurt by decline in revenues in the Group’s construction and real estate investment sector. Operating expenses dropped 9% from US$ 2.75 m to US$ 2.50 m.

Consolidated operating income declined by 31% to reach US$ 959 thousand in the last quarter of 2021 in comparison to US$ 1.38 m in the prior-year quarter.

Full-year results

Consolidated net profit attributable to parent shareholders was US$746 thousand, compared to a profit of US$ 5.03 m for the same period last year, a decline of 85%. Earnings Per Share of the parent company amounted to US cents 0.25 as compared to Earnings of US cents 1.69 in 2020.

The company attributed the decrease to the outcome of lower operating profits within the Group’s construction arm, and real estate investments as well as reversal of impaired provisions for receivables within one of the company’s real estate investments to the tune of US$ 5.77 m in 2020.

Consolidated net operating loss increased by 87% to US$ 3.34 m in comparison to a loss of US$ 1.79 m for the same period in 2020 amid decline in revenues in the Group’s construction and the real estate investments as well as a drop in COVID-19 government support associated to pandemic which was available throughout 2020. Operating expenses dropped by 17% as a result of stringent controls. Total operating income stood at US$ 5.57 m, a 38% decline from the US$ 8.99 m recorded in 2020.

INOVEST’s Chairman, Mohammed Hamed Al Shalfan said, “Despite the continuing challenges that the world as a whole has faced in 2021 and the repercussions and associated impact of the Covid pandemic on both societal wellbeing and economy, the group has remained on sound footing, continuing to successfully nourish and focus on its existing investments; restructuring and striving to raise their efficiency and performance in order to expand the group’s portfolio of income generating assets and to stand true to our overarching principle of sustainability.

CEO of INOVEST, Yasser Al Jar said,“Towards supporting and sustaining the group position over the coming three-year cycle, we expect to continue to see growth of revenues within our contracting arm, Tamcon, which has secured tenders with a total value of approximately US$ 70 m.” “From another angle and coinciding with the announcement of several large residential and housing projects within the Kingdom, our BIW Labour Accommodation project has had noticeable albeit gradual improvements in its occupancy rates, despite an initial negative dent to occupancy as a result of the pandemic in early 2020 – mid-2021.

Within the logistics sector, the group is currently assessing its options for expansion within as the sector has proven its resilience throughout the pandemic.”