Dubai’s Arabtec Q1 net loss narrows as revenues rise

Dubai contractor Arabtec reported a narrowing first-quarter net loss on Sunday as revenue rose.

The firm had reported losses in the preceding five quarters, which it blamed on increased costs and tough market conditions. In April, its chairman said Arabtec could break even this year and should return to profit in 2017.

Arabtec made a net loss attributable to equity holders in the parent of Dhs 46.4m ($12.63m) in the three months to March 31, it said in a statement. This compared with a loss of Dhs 279.8m in the corresponding period of 2015.

Analysts polled by Reuters had on average forecast Arabtec would make a quarterly net loss of Dhs 123.6m.

The firm’s quarterly revenue was Dhs 1.94bn, versus Dhs 1.79bn a year earlier.

The company, whose largest shareholder is Abu Dhabi state-owned fund Aabar, has undergone major upheavals over the past few years, with the departure of its chairman and most senior management, while a much-touted $35.8bn project to build one million homes in Egypt failed to be agreed.

Arabtec’s 2015 net loss was Dhs 2.35bn ($640m) in 2015, Reuters data shows.