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).
They have assets, but most likely they are in form of land, they own several plots on the Pearl, which they either cannot offload in this market or if they did it would be at a significant loss.
They obviously have a cash flow crisis as they leveraged the money from this development to finance other things, like the stock market investments, and they lost. This is where the current customers come in.
I wonder if they will "accidentally" not tell the banks about the delay in building and the funds for the final payments will then get accidentally transfered to FQs accounts. Of course this would not be FQs fault.
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).
They have assets, but most likely they are in form of land, they own several plots on the Pearl, which they either cannot offload in this market or if they did it would be at a significant loss.
They obviously have a cash flow crisis as they leveraged the money from this development to finance other things, like the stock market investments, and they lost. This is where the current customers come in.
I wonder if they will "accidentally" not tell the banks about the delay in building and the funds for the final payments will then get accidentally transfered to FQs accounts. Of course this would not be FQs fault.