UAE healthcare firm NMC posts 38.2% profit jump, eyes more acquisitions

UAE healthcare provider NMC Health reported a 38.2 per cent rise in annual net profit on Wednesday and said acquisitions this year could top the $641m it spent in 2017.

London-listed NMC reported a net profit of $209.2m on revenue of $1.6bn, up 31.3 per cent.

The Gulf’s healthcare sector is growing partly due to increasingly wealthy population that is becoming more susceptible to lifestyle diseases such as diabetes and obesity.

NMC’s 2017 acquisitions included the Al Zahra Hospital in the emirate of Sharjah for $322m.

“We can do more than last year, we can do up to $800m acquisitions without taking fresh facilities,” CEO Prasanth Manghat told Reuters.

“The company’s balance sheet will support our strategy,” he said, adding that NMC has around $600-700m in unused facilities and also has cash.

NMC last year signed two syndicated facilities last year, a five-year $825m loan and a seven-year $250m loan.

Manghat said NMC’s focus remains on Saudi Arabia, Dubai and Oman where it is looking to grow.

“Saudi …(offers) huge opportunities for growth. We are awaiting Oman’s new mandatory insurance,” he said, adding that Dubai is also picking up.

NMC, which was included in the FTSE 100 index last year, manages more than 125 assets in 13 countries.