Dubai’s Arabtec’s Q4 profit surges

Dubai’s Arabtec’s Q4 profit surges

Dubai builder Arabtec , in which Abu Dhabi's Aabar Investments upped its stake recently, saw a three-fold rise in its fourth-quarter net profit, handily beating analyst expectations.

March 8, 2012 3:37 by Reuters

The largest builder in the United Arab Emirates by market value made a net profit of 165.8 million dirhams ($45.14 million)for the fourth quarter, Reuters calculated, compared with 54.7 million dirhams in the corresponding period in 2010.

Reuters calculated fourth-quarter figures from previous financial statements. Full-year profit after accounting for minority interest stood at 260.5 million dirhams, the company said in a statement to the bourse, down 15 percent from the prior-year period.

The company did not provide quarterly numbers in the statement.

Arabtec’s Q4 profit beat estimates of three analysts polled by Reuters, who expected average profit to drop to 24.57 million dirhams.

Revenue for the year was 5 billion dirhams, Arabtec said. Its board proposed a cash dividend of 5 fils per share and a bonus issue amounting to 5 percent of its capital.

Abu Dhabi’s sovereign fund Aabar Investments, which abruptly cancelled a $1.7 billion deal for a majority stake in Arabtec two years ago, increased its holding in the company earlier this week. The move raised speculation of the Abu Dhabi fund’s renewed interest in the Dubai builder.

Arabtec won two major contracts at the start of the year in the UAE. It was awarded a $153 million contract for expansion of the Dubai International Airport and has also won three contracts in neighbouring Abu Dhabi for 256 million dirhams.

Shares of Arabtec, which have soared over 100 percent this year, closed at 2.93 dirhams on the Dubai bourse Wednesday. ($1 = 3.6730 UAE dirhams) (Reporting by Dinesh Nair; Editing by Rachna Uppal)