(The Group’s Comments) Mazaya’s Net Profit Drops to QAR 13.63 Million for First Half of 2019

August 08, 2019

Profits: Mazaya Qatar Real Estate Development’s profits decreased by 57% to QAR 13.63 million for the first half of 2019, compared to QAR 31.75 million for the same period of last year, while its earnings per share amounted to QAR 0.001 versus QAR 0.003 for the corresponding first half of 2018. As for the second quarter, Mazaya posted a net profit of QAR 25.1 million, compared to QAR 38.1 million for the same quarter in 2018. The company had reported profits of about QAR 16.21 million for the first half of 2018, but the application of standard No. 16 raised that profit to QAR 31.75 million.

Revenues: Mazaya’s operating income amounted to about QAR 47.0 million, compared to QAR 12.4 million for the same period of 2018, as the company recorded QAR 37.2 million under the item financing income during the first half of the current year. The company's revenues for the first half of 2018 amounted to QAR 33 million, representing claims for compensation against a contractor for delayed completion of project, which were deducted from the said contractor’s dues, and included the amount of QAR 4.7 million generated from real estate valuation. Contrary to that, Mazaya’s results for the first half of 2019 did not include those revenues, which affected the profits.

Expenses: amounted to about QAR 33.4 million compared to QAR 18.7 million for the same first half of 2018, an increase of 79%, as a result of the climb in financing costs by QAR 16.4 million, as well as the increase in administrative and general expenses.