By IANS,
Dubai : The Emirates Group, comprising its flagship company Emirates Airline, Dnata and other subsidiaries, reported its 20th consecutive year of net profit, notching a new profit record despite soaring oil prices and challenging business conditions in the second half of the 2007-08 fiscal.
The group’s net profit increased 54.1 percent to 5.3 billion dirhams ($1.45 billion) for the period, on revenues of 41.2 billion dirhams ($11.2 billion) compared to the previous year’s 31.1 billion dirhams ($8.5 billion).
“It was another record year for the group in spite of a challenging business climate, particularly in the second six months where the soaring cost of jet fuel made a big dent, although the impact was partly offset by other operating gains,” chairman and chief executive of Emirates Airline and Group Sheikh Ahmed Bin Saeed Al-Maktoum, said in a statement.
The group’s net margin improved to 13.2 percent from 11.4 percent in the previous year.
“Despite the long-term forecast of a decrease in the number of passengers travelling in First and Business class, I am happy to report that Emirates once again bucked the trend and boosted our seat factor in the forward cabins,” Sheikh Ahmed said.
“Emirates is fortunate to be located in Dubai at the centre of the new Silk Road between East and West. I believe the threat of an economic downturn will be offset for Emirates by the boom in the Middle East, especially the thriving travel industry of tourism and commerce.”
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Saudi Arabia needs $200 billion investment in water, power projects
Saudi Arabia needs over $200 billion investment in its desalination and power generation programmes in the next 15 years amid high demand of the growing population and the construction of mega projects.
Equally important though is the need to ensure environmental and economic sustainability at all phases of development programs, the Saudi Gazette reported.
The country’s Saline Water Conversion Corp (SWCC) has estimated that through 2020, the country will need to spend $50 billion on water projects, many integrated with new power generation capacity, in order to meet the rapidly growing water demand.
“Investment in the Saudi water and power sectors has reached a critical period, with over $200 billion required over the next 15 years,” the newspaper quoted Saudi Minister of Water and Electricity Abdullah Al-Hussayen as saying.
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UAE investor bails out niche British airline
Britain’s all-business class airline Silverjet has announced that a United Arab Emirates-based investor will inject $100 million into its working capital for a much needed fillip.
According to the agreement signed by the airline and the investor, approximately $25 million will initially be invested directly in Silverjet by means of debt and equity.
It is anticipated that the equity element will amount to approximately $8 million, which will be subscribed at 17 pence per share.
As a result, the new ordinary shares will represent approximately 28 percent of the enlarged share capital. It is expected that a debt facility will be made available to the company imminently.
The agreement also sets out the intent by the investor to invest up to a further $75 million in the ongoing development of Silverjet and to participate in the international rollout of the Silverjet brand and concept into new markets within the Middle East, the Far East and Africa, the company said in a statement.