Qatar’s United Development Company (UDC) has reported a net profit of QR136 million ($37.3 million) for the first quarter of this year, an increase of 152 per cent over the corresponding period in 2007.
Earnings per share were QR1.01, again a triple-digit percentage increase from the same period in 2007. Revenues climbed to QR623 million from QR347 million, while total assets reached QR6.17 billion.
“Our strong financial performance proves UDC’s ability to foster achievements in quality and quantity,” said Hussien AlFardan, UDC chairman.
Khalil Sholy, managing director and president of UDC, described the performance as a remarkable start to a promising fiscal year.
“We have managed to transform many of our innovative business ideas and robust growth strategies into successful thriving businesses that can withstand the world’s economic cycles. This is clearly reflected in UDC’s financial performance during the period.”
UDC’s target areas of interest include: infrastructure and utilities, hydrocarbon and energy, urban development, environmental-related businesses and hospitality and leisure.
UDC established the Qatar Dredging Company (QDC), a joint venture with the State of Qatar and Belgium’s Dredging, Environmental & Marine Engineering NV, and formed Qatar Cool, a district cooling company, in partnership with Tabreed of the UAE.
It also partnered with Seef Limited, a joint venture with Qatar Petroleum, to develop a plant to produce linear alkyl benzene, which is the main feedstock for detergent manufacture. The plant started operations in March 2006 with a production capacity of 100,000 tonnes a year. UDC has also invested in the Gulf Formaldehyde Company as a joint venture partner with Qatar Fertiliser Company (Qafco) and other Qatari investors. Operations began in 2004.
In mid-2006, UDC entered into a new joint venture with Besix NV of Belgium to establish a ready-mix concrete facility, with a big chunk of the shareholding split between UDC (32 per cent) and Besix NV (49 per cent). The remaining shares were acquired by local Qatari investors. Production began in June 2006. On May 31, 2006 UDC entered into a partnership with a Turkish biological wastewater treatment company, Millenya Inc.
Its latest business partnership was signed in November 2006 when the company concluded a joint venture agreement with Spain’s Ronautica SA. The agreement saw the establishment of Ronautica-Middle East, a marina operations and management company. UDC holds a 60 per cent stake while Ronautica holds the remaining 40 per cent in the new firm.
UDC is also the owner and developer of the QR55 billion flagship project, The Pearl-Qatar. The island is one of the largest real estate developments in Qatar and one of the most lavishly designed in the world.
The company, among the top 100 in the Gulf, was established in July 1999 and has an authorised share capital of QR1.07 billion.
