July 27 (Bloomberg) -- Arabtec Holding PJSC, the builder that helped drive Dubai’s stock index into a bear market last month, snapped a five-day losing streak after reporting an 11 percent increase in second-quarter profit.
The shares rose 1.3 percent to close at 4.05 dirhams after dropping as much as 6.5 percent earlier. That compares with a 1.9 percent gain for the benchmark DFM General Index.
Net income increased to 103 million dirhams ($28 million) from 92.4 million dirhams a year earlier, Arabtec said in a statement. The mean estimate of three analysts was for a profit of 135 million dirhams, according to data compiled by Bloomberg. Revenue rose 51 percent to 2.4 billion dirhams.
Arabtec replaced its chief executive officer and fired top managers last month, throwing into doubt an expansion plan that helped the shares quadruple during the former CEO’s 15 months tenure. Concerns the builder was losing state support caused the stock to drop 59 percent from June 5 to June 30. That helped push the DFM General Index down 23 percent in the same period.
Khadem Al Qubaisi, chairman of both Arabtec and its second-largest shareholder Aabar Investments PJSC, said July 2 that state-run Aabar is considering boosting its stake in the builder. Aabar is in talks with former CEO Hasan Ismaik to buy at least half of his 28.9 percent stake, Bloomberg News reported July 16.
Arabtec’s management recently made efforts to complete a “limited restructuring” to cut expenditures and increase productivity, the company said today.
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