We've discussed about whether FQ have a cash flow issue, but I came across their financial statements on the internet the other day which sheds some light on this. As a Kuwaiti company they have posted an investors report for shareholders on the web.
This was the result for FQ for the first 3mths of this year Jan 2009 - Mar 2009.
Total revenue = KD-1,742,418 or -QR22,000,000)
Total Net Profit = KD -2,359,910 or -QR29,891,000)
Highlights in the review point out that FQ lost out significantly on the stock market and had to get a loan to finish the "Porto" project. Not much of a highlight.
It also notes that there is little hope for income outside of rental income for 2009, which obviously they would have been getting in the first 3 mths of the year which saw them haemorrhaging money. Given we're now in the third quarter if they did nothing to address this they could have by now lost between KD-6Mn (QR76,000,000) to 7Mn (QR88,700,000).
I'm taking a punt, but I would say that their total assets would equate to the land that they have on the Pearl, which they will not be able to liquidate for cash, and a few other investments.
They obviously have a cash flow crisis as they leveraged the money from this development to finance other things and they lost. This is where the customers come in.
I'd love to get my money back come Nov. 1 when the building is not finished, but how would they pay me?
We've discussed about whether FQ have a cash flow issue, but I came across their financial statements on the internet the other day which sheds some light on this. As a Kuwaiti company they have posted an investors report for shareholders on the web.
http://www.globalinv.net/pdfs/funds/SM/FirstQatarRealEstateQ109.pdf
This was the result for FQ for the first 3mths of this year Jan 2009 - Mar 2009.
Total revenue = KD-1,742,418 or -QR22,000,000)
Total Net Profit = KD -2,359,910 or -QR29,891,000)
Highlights in the review point out that FQ lost out significantly on the stock market and had to get a loan to finish the "Porto" project. Not much of a highlight.
It also notes that there is little hope for income outside of rental income for 2009, which obviously they would have been getting in the first 3 mths of the year which saw them haemorrhaging money. Given we're now in the third quarter if they did nothing to address this they could have by now lost between KD-6Mn (QR76,000,000) to 7Mn (QR88,700,000).
I'm taking a punt, but I would say that their total assets would equate to the land that they have on the Pearl, which they will not be able to liquidate for cash, and a few other investments.
They obviously have a cash flow crisis as they leveraged the money from this development to finance other things and they lost. This is where the customers come in.
I'd love to get my money back come Nov. 1 when the building is not finished, but how would they pay me?