Dubai builder Arabtec swings to surprise net loss in Q1
The earnings were well below estimates from two analysts polled by Reuters
Dubai’s largest construction firm Arabtec swung to a first-quarter net loss on Wednesday, missing analysts’ estimates, as costs surged.
The builder reported a loss attributable to equity holders in the parent of 279.82 million dirhams ($76.2 million) in the three months to March 31, compared to a 137.89 million dirham profit in the corresponding period of 2014, it said in a statement to Dubai's bourse.
The earnings were well below estimates from two analysts polled by Reuters. Global Investment House had forecast Arabtec would make a quarterly profit of 95 million dirhams, while SICO Bahrain had estimated a profit of 20.2 million dirhams.
Arabtec shares tumbled as much as 7.1 percent to 2.37 dirhams in morning trading on the Dubai Financial Market.
The company has seen major management upheavals over the past year, culminating in the election last week of Abu Dhabi businessman Mohamed Thani Murshed Ghannam al-Rumaithi as its chairman. He replaced Khadem Abdulla al-Qubaisi, who was not nominated for renewed board membership.
The departure of Qubaisi followed the resignation of Hasan Ismaik as chief executive last June after frictions between Ismaik and Arabtec's major shareholder, Aabar Investments.
Arabtec’s direct costs reached 1.93 billion dirhams during the first quarter, up 28 percent from the corresponding period of last year, the statement showed. Revenues rose only marginally, by 0.2 percent to 1.79 billion dirhams.
The company has been negotiating a $36.7 billion scheme to build one million housing units in Egypt, but has not yet announced the signing of a final contract. It has major projects in Saudi Arabia and the United Arab Emirates.
Dubai’s Arabtec says in talks with banks to fund Egypt projectArabtec did not say how much it was looking to borrow or provide any other details Economy
Arabtec agrees terms with Egypt for $40 bln housing projectThe first phase of the $40 billion plan is to build one million homes across Egypt Business
Dubai’s Arabtec wins $283 mln contract from Saudi AramcoThe company said it had also recently won other contracts from Saudi Aramco worth 930 million dirhams via unit Target Engineering Energy
Dubai's Arabtec seeks to sell four Saudi unitsThe board of Arabtec has approved disposing of Arabtec Saudi Arabia Middle East
Dubai's Arabtec swings to loss, blames high expensesLast year's profits were hit by non-recurring general and administrative expenses Property
UAE’s Arabtec to launch huge Egypt housing project by year-endIn March, Arabtec announced it would build one million homes in Egypt in a $40 billion project Property
Egypt housing project talks slowed by Arabtec board changes-ministerMostafa Madbouly said he believed that would only have a minor impact on the project’s delivery Property
Abu Dhabi’s Aabar gets approval to tighten grip on ArabtecAabar’s move to raise its shareholding follows a bitter struggle with former Arabtec chief executive Hasan Ismaik Property
UAE’s Arabtec wins $253 mln of Saudi petro workThe projects include upgrading liquefied gas and refinery facilities for national oil firm Saudi Aramco Property
Egypt, Arabtec near agreement on $40 bln housing projectArabtec executives will visit Cairo within 10 days to sign the final contract, the media advisor for the housing minister said. Economy