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.
The largest builder in the UAE by market value made a net profit of AED165.8m (US$45.14m) for the fourth quarter, Reuters calculated, compared with AED54.7m 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 AED260.5m, 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 AED24.57m.
Revenue for the year was AED5bn, 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 AED$153m contract for expansion of the Dubai International Airport and has also won three contracts in neighbouring Abu Dhabi for AED256m.
Shares of Arabtec, which have soared over 100 percent this year, closed at AED2.93 on the Dubai bourse Wednesday.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.
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