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Thu 2 May 2013 04:25 PM

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Arabtec Q1 net profit drops 25.7%

Dubai contracting giant reports a first-quarter profit of $17m as direct costs increase

Arabtec Q1 net profit drops 25.7%

Dubai contractor Arabtec, part-owned by Abu Dhabi state fund Aabar Investments, reported a 25.7 percent drop in net attributable profit for the last quarter on Thursday, as costs rose.

Arabtec, which replaced its chief executive in March as part of a management shake-up, reported a first-quarter profit of AED62.5m ($17m) compared to AED84.1m in the corresponding period of 2012.

The earnings beat estimates of five analysts polled by Reuters, who had expected on average a net profit of 35.8 million dirhams for the first quarter.

Revenue for the quarter rose to AED1.54bn from AED1.29bn a year earlier. However, direct costs increased to AED1.35bn from AED1.08bn.

The company also said it had suspended its project in Syria because of unrest in that country.