Arabtec Q4 profit beats estimates, delays rights issue

Dubai's Arabtec reported a full-year net profit of AED307.1m ($83.61m) for 2010, down 38 percent from a year earlier, while the builder has delayed a planned rights issue and a $150m convertible bond.

Arabtec posted a fourth-quarter net profit of AED54.7m ($14.89m), Reuters calculated based on the full-year earnings, beating analyst estimates.

The largest builder in the UAE by market value reported a net loss of AED16.81m in the year-earlier period.

In a statement to the Dubai bourse, the company said net revenues for 2010 were AED5.46bn.

Arabtec said it has also postponed a proposed rights issue of 398.67 million shares at AED1 a share until market conditions become more favourable as well as the sale of a five-year $150m worth convertible bonds "for the time being".

Arabtec is expanding overseas to diversify away from Dubai's once-booming property sector, which has been blighted by over-supply and a lack of demand, with developers slowing or cancelling projects.

The builder won contracts worth AED356m ($96.92m) to build an underground car park in Abu Dhabi and residential villas in Egypt in January.