Arabtec Reports Second-Quarter Loss as Costs Increase
Aug. 8 (Bloomberg) -- Arabtec Holding Co., the biggest builder in the United Arab Emirates by market value, posted a second-quarter loss, missing analysts’ estimates, as costs and expenses increased.
The loss attributable to owners of the parent was 11.6 million dirhams after a profit of 29 million dirhams a year earlier, the company said in a statement to the Dubai stock market today. The average estimate of six analysts was for a profit of 73 million dirhams, according to data compiled by Bloomberg.
Abu Dhabi government-controlled Aabar Investments PJSC raised its stake in Dubai-based Arabtec this year to 21.6 percent, prompting a surge in the shares. The company said in June that along with TAV Insaat of Turkey and others it won a contract valued at about $3 billion to build a terminal at Abu Dhabi Airport.
Contract costs increased to 1.19 billion dirhams in the second quarter from 1.08 billion dirhams a year earlier, while administrative expenses rose to 154.2 million from 95 million dirhams. Revenue climbed to 1.32 billion dirhams from 1.22 billion dirhams, according to the company statement.
The shares dropped 0.7 percent to 3.02 dirhams in Dubai yesterday. The stock has gained 99 percent this year compared with a 15 percent increase for the benchmark Dubai Financial Market General Index. (DFMGI)
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