ICD today announced its consolidated financial results for the six month period ended 30 June 2020 having generated Revenues of AED 73.7 Billion and recognised a Net loss of AED 9.4 Billion as the Covid-19 global crisis significantly affected its operations.
Revenues were AED 73.7 Billion, a 31 per cent decrease compared to the prior year period, with material drops in Transportation and Oil & Gas revenues partially offset by higher income in Banking and Financial Services including DenizBank A.S., the bank acquired by EmiratesNBD in the second half of 2019.
The Group reported a Net Loss of AED 9.4 Billion, with the majority of the losses coming from the Transportation segment, and to a lesser extent, hospitality activities in the Other segment, offset by a resilient profit contribution from Banking and Financial Services. The pandemic related restrictions imposed by governments across the globe to fight the virus spread affected all travel, hospitality, retail and real estate activities to various degrees. It also reduced the demand for oil products and depressed prices further over the period.
The Net Loss attributable to the equity holder was AED 11.4 Billion.
Assets were down 1 per cent from the year end 2019 to AED 1,107.7 Billion, whilst Liabilities were AED 869.5 Billion, remaining at similar levels to 2019. The Group’s share of Equity decreased by 6.4 per cent to AED 191.5 Billion.
H.E. Mohammed Ibrahim Al Shaibani, Managing Director, Investment Corporation of Dubai, commented: “The Covid-19 health crisis has had a severe impact on our key businesses. The drop in revenues was sudden and of a magnitude unseen before. However, all our portfolio companies actively engaged in significant efforts to reduce costs, preserve liquidity and adapt operations. Our shareholder and Government authorities also showed strong support and took decisive steps to help businesses throughout the crisis and certain of our key businesses benefited from this. As the crisis abates, we look forward to the re-opening of the global economy, confident that our companies will seize opportunities and bounce back, having preserved their competitive edge despite this unprecedented ordeal.”
Investment Corporation of Dubai (ICD) is the principal investment arm of the Government of Dubai. It was established in May 2006 and mandated with the consolidation and management of the Government of Dubai’s portfolio of commercial companies and investments. ICD was also assigned the provision of strategic oversight to portfolio companies through the development and implementation of effective corporate governance policies, and sound investment strategies.