UAE's Arabtec wins $253m of Saudi oil and gas work

Projects include upgrading liquefied gas and refinery facilities for national oil firm Saudi Aramco
UAE's Arabtec wins $253m of Saudi oil and gas work
By Reuters
Sun 22 Feb 2015 10:24 AM

UAE builder Arabtec said a wholly owned subsidiary had won 930 million dirhams ($253 million) of contracts in Saudi Arabia's oil and gas industry.

The projects include upgrading liquefied gas and refinery facilities for national oil firm Saudi Aramco, Arabtec said in a statement on Sunday.

In December, Arabtec reported a 32 percent drop in third-quarter net profit, missing analysts' estimates by a wide margin as general expenses nearly doubled from a year earlier.

The builder, in which Abu Dhabi state fund Aabar Investments owns a 36.115 percent stake, reported a profit of AED68.7 million ($18.71 million) in the three months ending September 30, down from AED100.8 million in the corresponding period of 2013.

Aabar raised its stake in Arabtec earlier this month after buying shares held by former chief executive Hassan Ismaik, who abruptly resigned in June after differences of opinion with Aabar.

It had been rumoured that the Dubai-based firm was in talks on potential acquisition targets.

Bloomberg, which cited people with knowledge of the matter, claimed Arabtec had approached banks to discuss potential financing for acquisitions.

However, it issued a statement last month via Dubai's stock market it said: "We would like to state that Arabtec is constantly evaluating available acquisition opportunities with the highest return for Arabtec which will serve the company's best interests and that of its shareholders.

"As for the aforesaid news, we would like to deny the same and to confirm that at the present time Arabtec is not undertaking any acquisitions."

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