The largest builder in the United Arab Emirates by market
value, made a net profit of 6.8 million dirhams ($1.85 million) in the three
months to Sep 30, compared with a net profit of 166.6 million dirhams in the
same period last year.
The firm’s shares were down 4.2 percent at 0703 GMT, having
risen as much as 1.9 percent earlier on Sunday ahead of the release of the
results.
Four analysts polled by Reuters had on average expected the
builder to post a net profit of 94.8 million dirhams for the third-quarter.
General and administrative expenses for the quarter rose to
155.9 million dirhams from 100.6 million dirhams a year earlier, while revenues
dropped to 1.28 billion dirhams against 1.66 billion dirhams the year before.
Profit for the first nine months fell to 252.4 million
dirhams, compared with a net profit of 511.7 million dirhams in the same period
of 2009.
Arabtec, which is bidding for $8.17 billion of work outside
its local markets, may look at new funding sources for its expansion plans, its
chief financial officer told the Reuters Middle East Investment Summit in
October.
Ziad Makhzoumi had told the summit he expected to see third
quarter profit in line with second quarter profit.
Arabtec’s second quarter profit was 111.1 million dirhams.
Arabtec is expanding overseas to diversify its portfolio
away from Dubai’s once-booming property sector which has been hit hard by the
global financial crisis as developers slow or cancel projects and jobs are
slashed.
It is focusing on winning projects in new markets and has
tendered for work in Turkmenistan, Azerbeijan and Angola.
Property prices in Dubai have been under pressure since late
last year, when the financial crisis and a slump in oil prices ended a six-year
economic boom in the Gulf region.
