2PointZero Group's Nine-Month Profit Triples Amidst Aggressive Global Expansion

Abu Dhabi investment firm 2PointZero Group has announced a significant three-fold increase in its net profit for the first nine months of the year, driven by its ongoing global expansion strategy which includes strategic acquisitions. The company reported that its net profit attributable to owners for the period spanning January to September reached Dh8.59 billion ($2.3 billion), a substantial rise from Dh2.64 billion recorded in the corresponding period last year. 2PointZero disclosed this information in a statement submitted to the Abu Dhabi Securities Exchange on Friday. Revenue also saw a multi-fold increase year-on-year, climbing to Dh33.7 billion. During the same period, the company recognized a net fair value gain of Dh5.8 billion, alongside an increase in investment and other income.

Despite the strong nine-month performance, the company's third-quarter profit experienced a decline of approximately 25 per cent, settling at Dh1.5 billion. This dip was attributed to increased costs and expenses, even though revenue for the quarter rose to Dh11.8 billion. Chief executive Samia Bouazza expressed confidence in the company's position, stating, "We are building on a strong foundation." She further highlighted the company's financial strength, noting, "With Dh15.7 billion in consolidated group cash and bank balances and Dh155 billion in total assets, we are well placed to invest through the cycle."

In August, 2PointZero's wholly owned subsidiary, ePointZero, successfully acquired a 90 per cent stake in Azura Power Holding, a prominent pan-African independent power producer. Prior to this, in July, ePointZero finalized the acquisition of Traverse Midstream Partners, a portfolio company of The Energy & Minerals Group, in a transaction valued at $2.25 billion. This acquisition grants ePointZero significant minority stakes in two key US midstream assets: 35 per cent of the Rover Pipeline and 25 per cent of the Ohio River System, both of which are operated by Energy Transfer. This marks the group's inaugural investment in US natural gas.

Earlier in June, 2PointZero completed the divestment of its 7.29 per cent stake in Taqa to Abu Dhabi Power, a subsidiary of L’imad, Abu Dhabi's sovereign investment vehicle. 2PointZero Group, established in November of the previous year through the merger of Abu Dhabi investment firms Multiply Group, Ghitha, and 2PointZero, concentrates its efforts on the energy and consumer sectors. Additionally, its mining and trading subsidiary, International Resources Holding (IRH), is also pursuing expansion. In July, IRH, in partnership with Adani Enterprises, entered into an agreement with the Indian state government of Odisha to develop an integrated greenfield aluminium project, estimated to be worth $11.5 billion.