* Q2 net profit 125 mln dirhams vs 31 mln dirhams yr-ago
* No concerns over funding, staff cut by 17 pct - CFO
* Provision drops to 6 mln dirhams from 41 mln dirhams in Q2
(Adds comments by CFO, background, share price)
By Stanley Carvalho and Jason Benham
ABU DHABI/DUBAI, July 28 Sorouh Real Estate
, which reported a fourfold surge in second-quarter
profit on Thursday, plans to invest 1.4 billion dirhams ($381
million) in completing and delivering its existing projects
Abu Dhabi's second-largest developer by market value made a
net profit of 125 million dirhams compared with 31 million in
the same period last year as it delivered more units and reduced
bad debt provisions.
Analysts had forecast, on average, profit of 157.17 million
dirhams in a Reuters poll.
"We plan to invest another 1.4 billion dirhams (in the
second half). Our focus is on project delivery and we are
expecting good results for the year-end," Richard Amos, chief
financial officer, said in a conference call on Thursday.
Sorouh invested 1.4 billion dirhams in its projects in the
first six months and plans to deliver some 1,000 homes by the
year-end, he added.
Profit for the first half rose 33 percent to 202 million
dirhams, Sorouh said in an earlier statement.
Revenue for the second quarter reached 1.22 billion dirhams,
most of which was derived from the ongoing handover of units in
Sun and Sky Towers, revenue from housing projects awarded by the
government and income from rental portfolio.
Sorouh's year-ago revenue stood at 189.8 million dirhams.
Provisions for doubtful debts fell sharply to 6.2 million
dirhams for the quarter, down from 41 million during the same
period last year.
Sorouh trimmed staff by 17 percent over the last year as
part of cost cuts and more jobs could happen as projects are
completed, Amos said.
The company has no immediate borrowing plans due to its
strong cash position, he added.
Sorouh's shares dipped 1.6 percent to 1.2 dirhams,
underperforming Abu Dhabi's bourse which edged 0.1
The developer said in June it would continue to focus on the
delivery of existing projects in its home market in 2011 and has
no plans to expand abroad yet.
Most Abu Dhabi developers have been focusing on completion
and delivery of existing projects after suffering big losses
during the global financial crisis, which put an end to a
six-year construction boom.
($1 = 3.673 UAE Dirhams)
(Editing by David Hulmes)
(Reporting by Stanley Carvalho & Jason Benham; Editing by David