May 2 (Bloomberg) -- Arabtec Holding Co., the company building a branch of the Louvre in Abu Dhabi, said first-quarter profit dropped 26 percent as costs increased.
Net income fell to 62.5 million dirhams ($17 million), or 4 fils a share, from 84.1 million dirhams, 5 fils, the company said today in a stock exchange statement. Direct costs surged 25 percent to 1.35 billion dirhams, wiping out a 20 percent jump in revenue to 1.55 billion dirhams.
Arabtec, which helped build the world’s tallest tower in Dubai, in February replaced its management and said it plans to more than double its market value. The Dubai-based company said it’s planning to raise 6.4 billion dirhams through bond and share sales to bolster its oil-and-gas installation business and expand in affordable housing.
The construction company’s backlog grew to 20.4 billion dirhams at the end of the first-quarter, from 19.7 billion a year earlier. Arabtec formed a venture with South Korea’s Samsung Engineering Co. last month to further expand its oil and gas business.
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