By John Irish
Dubai construction firm beats forecasts by nearly tripling Q3 profit to $46.2mn.
Arabtec Holding, Dubai's largest construction company by market value, beat forecasts by nearly tripling third-quarter profit as it benefited from growth in its units.
The company smashed previous records posting net income of 169.6 million dirhams ($46.2 million) in the three months to September 30, Reuters calculated based on nine-month data the company released.
"Profitability of Arabtec subsidiaries and affiliates has improved and significantly impacted the consolidated profitability," Chief Executive Riad Kamel said in a statement.
Net income in the nine months to September 30 was 343 million dirhams, the company said in a statement on the Dubai stock exchange website.
Chief Financial Officer (CFO) Omar Badran declined to explain the surge in third-quarter results. Kamel was not immediately available for comment.
"We are pretty bullish on Arabtec," said Bikash Rout, an analyst with Kuwait-based Global Investment House. "But it's fair to say it exceeded our expectations by wide margins."
Arabtec did not give quarterly figures which Reuters calculated from previous financial statements. Arabtec made a profit of 173.4 million dirhams in the first half and 45.67 million dirhams in the third quarter of 2006.
Analysts forecasts for third quarter ranged from 65.50 million dirhams to 77 million dirhams, according to a Reuters survey last month.
Shares in Arabtec closed almost 15% higher at 8.84 dirhams on Monday before third-quarter results were announced. - Reuters