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.
