Dubai contracting giant posts stronger results, says may break even later this year
Dubai contractor Arabtec reported a narrowing first-quarter net loss on Sunday as revenue rose.
The firm had reported losses in the preceding five quarters, which it blamed on increased costs and tough market conditions. In April, its chairman said Arabtec could break even this year and should return to profit in 2017.
Arabtec made a net loss attributable to equity holders in the parent of 46.4 million dirhams ($12.63 million) in the three months to March 31, it said in a statement. This compared with a loss of 279.8 million dirhams in the corresponding period of 2015.
Analysts polled by Reuters had on average forecast Arabtec would make a quarterly net loss of 123.6 million dirhams.
The firm's quarterly revenue was 1.94 billion dirhams, versus 1.79 billion dirhams a year earlier.
The company, whose largest shareholder is Abu Dhabi state-owned fund Aabar, has undergone major upheavals over the past few years, with the departure of its chairman and most senior management, while a much-touted $35.8 billion project to build one million homes in Egypt failed to be agreed.
Arabtec's 2015 net loss was 2.35 billion dirhams ($640 million) in 2015, Reuters data shows.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.