Arabtec swings to loss on higher costs

UAE’s largest construction company records $3.16m net loss in second quarter of 2012

The UAE’s largest construction company by market value, Arabtec Holding has recorded a $3.16m net loss in the second quarter, compared with a net profit of $7.9m a year ago, on higher costs and expenses and despite growth in revenue.

Analysts predicted the Dubai-based builder to register a $21.2m in net income for the quarter, according to Reuters. Revenue rose to $353.9m from $326.7m in the same period in 2011.

However, contract costs increased by $54.45m to $326.7m, while administrative expenses surged by 62% to $42m, Arabtec said.

The company, in which Abu Dhabi state fund Aabar recently raised its stake to 21.6%, said it expected to secure more contracts from the capital city.

Aabar made a $1.7bn failed bid in 2010 for 70% of Arabtec shares.

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