Egypt's Sodic posts 2010 net profit, reversing loss

Sodic, Egypt's third-biggest listed developer, swung to a net profit of 135.3 million Egyptian pounds ($22.8 million) in 2010 and doubled project sales, it said on Thursday.

The high-end real estate firm, which does not fully recognise revenues until it delivers units, made a net loss of 112.5 million pounds in 2009.

Egypt's property sector has been a major driver of foreign investment and growth but is now reeling from a string of legal rows over state land sales.

Analysts are watching the sector to see how it fares in the political turmoil that ousted President Hosni Mubarak from office.

The firm made 2 billion pounds worth of sales in projects, a 100 percent increase from last year, while 2010 revenues jumped to 520 million pounds, from 30.7 million pounds a year earlier.

Sodic said it proposed a cash dividend of 4 pounds per share. Last year the board also approved a 2.5-for-1 stock split, in line with a new ratio suggested by the financial regulator.

Chief Executive Officer Maher Maksoud told Reuters on Feb. 17 that it was assuming zero sales for 2011 but remained optimistic about Egypt's growth prospects.

It said it had enough cash in reserve and cash flows, as well as limited outstanding debt and land debt to ride its way through short-term hiccups as a result of the political turmoil.

The firm has lowered its planned investments for 2011 to 1.2 billion Egyptian pounds from 1.8 billion. (Reporting by Sherine El Madany; Editing by Dina Zayed and Will Waterman) ($1=5.930 Egyptian Pound)