United Development Company Q.P.S.C. (UDCD) Q4 FY2025 Earnings Call Transcript & Summary

Hello, and welcome to United Development Company. Please note that this call is being recorded. [Operator Instructions] I'd like to hand the call over to our moderator for today, Dana Al Sowaidi. Please go ahead.

Hello, everyone. [Foreign Language] to you all. This is Dana Al Sowaidi from QNB Financial Services. I would like to welcome everyone to United Development Company's Fourth Quarter 2025 Financial Results Conference Call. On this call from management, we have Maher Omar, Executive Director, Investment and Development; and Karim Farhat, Executive Director of Finance. We will conduct this conference call with the management first reviewing the company's results followed by a Q&A session. I will now turn the call over to Maher. Please go ahead.

Hello, everyone. The financial statements of United Development Company for the year ended December 31, 2025. The company has achieved a revenue of QAR 1.9 billion with an overall net profit of QAR 404 million and the net profit attributable to the equity shareholder of QAR 431 million. And the earnings per share is QAR 0.122 per share. And the Board of Directors has recommended dividend distribution of 5.5% of the par value of the share to the Annual General Assembly Meeting, which will be held on 4th of March 2026. So this is a brief about the profitability results and the financial results of United Development Company, and we are more than happy to answer all the questions you may have.

[Operator Instructions] Your first question comes from the line of Wei Chow with AlRayan Investments.

Hello?

Thank you very much. Go ahead.

A few questions. One, could you tell us what is the nature of this QAR 295 million provision that you have booked regarding some litigations? Could you tell us the nature of that? Second is, I was looking at the distribution of your different subsidiaries. And within the infrastructure segment, there is an item called others, which is about QAR 200 million, in fact, QAR 227 million. Could you tell us what is these others which are recorded as revenue of QAR 227 million in the infrastructure segment? These are our two questions for now.

Okay. The first question is the QAR 295 million. As it is very well disclosed in the financial statement, it relates to a litigation that was not in favor of the company. So the company has taken a provision. The case has not been executed yet. But as per the appropriate accounting treatment, we have taken a provision that has been required for such litigation that the outcome was not favorable to the company. And it is very well disclosed and clarified in Note 35 of the financial statements. In respect to the others under infrastructure, as we mentioned, others include information technology and other marine-related services and so forth. So this is the other revenue items related to the infrastructure sector.

Information technology segment, you're saying.

Yes.

And this was earlier being recorded in the other segment, right? Now it's been reclassified.

Yes, been reclassified. Yes.

Okay. And my last question is your fourth quarter urban sales were very strong. Could you give us some sense, that was this was related to land sales, this was in big land sales? Or there were more unit sales?

This is a mixture of operating profitability and revaluation gain as there has been investment in a property completed during the year 2025. And then we have to valuate them and state them at a market value. So these have been valuated. And of course, these are investment in property where we are revenue generating, and they are generating a good sufficient revenue for the company. So in simple, these developments have been completed in 2025. As per the international accounting standard, they have to be stated at market value if they are available for lease. And thus, this is what has happened and a valuation has been made. And accordingly, there has been a revaluation gain, which is part of it, revaluation gain and then operational results.

Is this related to the Gewan properties or some other one?

It is, yes. Yes.

[Operator Instructions] Since there are no further questions at this time, I would like to turn the call back over to our moderator, Dana. Please go ahead.

If there are no more questions, we would like to thank the company's management for the results update and for taking the time to answer all queries. And we look forward to speaking to you all for the first quarter results.

Thank you very much indeed. Thank you very much.

Everyone, have a nice day ahead. You may now disconnect.

Bye-bye.