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| Nakheel posts $3.65 bn loss in H1 '09 |
| Press Trust of India / Dubai Dec 09, 2009, 17:43 IST |
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Nakheel PJSC, the real estate company of debt-laden conglomerate Dubai World, has reported a loss of 13.4 billion dirhams ($3.65 billion) in the first half of this year.
Nakheel's loss is on account of a steep fall in the value of land prices and related writedowns.
Dubai World, the parent of the realty firm, had rattled global markets last months, after announcing that it would seek six months additional time to repay debts of $59 billion, including the Nakheel bonds which are due on December 14.
Currently, Dubai World is looking to restructure debts of $26 billion, including the bonds worth about $4 billion.
In a filing to the Nasdaq Dubai Exchange, Nakheel said the firm and it subsidiaries incurred a loss of $3.65 billion.
The entity had a profit of 2.64 billion dirhams in the same period a year ago.
Moreover, Nakheel's revenues plunged 78 per cent to 1.97 billion dirhams in the first half of 2009. In the comparable period, the same stood at nine billion dirhams.
Nakheel said that challenging market environment has resulted in impairment and termination charges of 13.21 billion dirhams in the first half of this year.
"The impairment charge (13.21 billion dirhams) primarily relates to the writedowns in the value of land to current fair market levels and the writedown of certain properties under construction relating to projects that have been delayed or scaled back," the filing said.
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