Dubai's Arabtec reports $626m loss for 2015

Company said it will seek to further cut costs in 2016, amid tough market conditions
Dubai's Arabtec reports $626m loss for 2015
By Reuters
Sun 21 Feb 2016 10:07 AM

Dubai contractor Arabtec reported a widening fourth-quarter net loss on Sunday that it blamed on tough market conditions.

The firm had also reported widening losses in the preceding four quarters that it attributed to increased costs.

Arabtec made a net loss of 360 million dirhams ($98.02 million) in the three months to Dec. 31, Reuters calculated based on Arabtec's full-year earnings statement.

This compares with a loss of 94.4 million dirhams in the corresponding period of 2014.

An analyst at SICO Bahrain had forecast Arabtec would make a quarterly net loss of 123.6 million dirhams.

The company, whose largest shareholder is Abu Dhabi state-owned fund Aabar, has undergone major upheavals over the past two 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 2.3 billion dirhams ($626m), which compares with a 2014 profit of 215 million dirhams ($59m), according to a bourse statement that said last year's loss was a "consequence of the continuing difficult environment that the regional construction market is facing".

The company will seek to further cut costs in 2016, it added.

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