IHC sees Q1 profit rise 87.6%, announces share buyback programme

International Holding Company (IHC) has reported a robust 87.6 per cent growth in net profit in Q1 2024.

The holding company achieved a net profit of Dhs8bn, a significant increase from Dhs4.3bn in the same period last year.

The surge in profitability was driven by a strong performance across the company’s core sectors, including real estate and Construction, technology, marine and dredging, and food and services.

Revenue hit Dhs19.3bn, marking a 22.5 per cent increase compared to Q1 2023.

The strategic consolidation of assets, including Q Holding with Modon, ADNEC, Miza Investment, and others in February, injected fresh momentum into IHC’s real estate segment.

Read: Abu Dhabi’s Q Holding to rebrand as Modon Holding after $12bn merger

Additionally, the marine and dredging sector continued its uptick buoyed by the success of NMDC, carrying forward the momentum from the previous fiscal year.

Syed Basar Shueb, CEO of IHC, attributed the quarter’s robust revenues to the company’s resilience and strategic focus on growth through selective acquisitions. He emphasised the importance of enhancing operational synergies and cementing IHC’s reputation as a global industry leader.

Aiming at long-term growth and sustainability, IHC unveiled its “next generation holding company”, 2PointZero, during Q1 2024.

Also read: Ex-UAE climate change minister to head IHC fund 2PointZero

The new entity is focused on key sectors, including financial services, mineral and resource management, transformative technology and AI, as well as digital and cryptocurrency ecosystems.

“With the introduction of a new flagship entity, we are optimistic about the future as we continue to diversify our portfolio and penetrate new markets and regions, aiming to maximise our impact,” added Shueb.

IHC endorses share buyback programme

In a strategic move to enhance shareholder value further, the IHC Board also endorsed a share buyback programme totalling up to Dhs5bn during the Q1 board catch-up. This initiative is slated for execution over a one-year timeframe.

The buyback programme, subject to requisite regulatory approvals, including those from the Abu Dhabi Securities Exchange, is poised to enhance shareholder value.

In other news, International Resources Holding (IRH), the mining investment arm of IHC Abu Dhabi’s offered to buy a majority stake in Vedanta Resources’ Zambian copper assets in its drive to build an African copper mining empire.

The IHC subsidiary recently made an offer of more than $1bn to buy a 51 per cent stake in Konkola Copper Mines from Indian billionaire Anil Agarwal-owned Vedanta, according to Reuters.