(The Group’s Comment) Barwa Real Estate Group Net Profit Declines by 25.7% to QAR 804 Million in the 3rd Quarter 2019

 

 

Profits: Profits for the 9 months period ended 30 September 2019 declined by 25.8% (QAR 279.1 million) to reach QAR 804.1 million compared to QAR 1083.2 million for the same period 2018. Earnings per share amounted QAR 0.21 compared to QAR 0.28 for the same period 2018. The 3rd quarter profits amounted QAR 294.5 million compared to QAR 279.5 million for the equivalent period 2018. The decline in the profits is attributed to the following reasons:

 

1.      The decline in the net revenue from rental by QAR 73.0 million

2.      The increase in the cost of financing by nearly QAR 55.0 million

3.      The provision of QAR 31.0 million amortizations as a result of the implementation of Standard 16 with 2019.

4.      The decline in the achieved profits from the sale of real estates by QAR 101.8 million

5.      The 2018 results has included an amount of QAR 140.4 million registered as an income from debt rescheduling.

 

 

Comprehensive Income: The Company recorded assessment losses reflected in the comprehensive income statement of nearly QAR 13.1 million versus QAR 1090.6 million. The company recorded an increase in the reassessment of real estates of QAR 99.0 million to reach QAR 376.0 million nearly 35% of the operating profits. The company has also recorded profits from the results of associated companies of QAR 64.0 million compared to QAR 18.8 million for the equivalent period 2018.