Dubai’s Arabtec Q3 Net Profit Falls 32% As Costs Rise

Dubai’s largest contractor Arabtec reported a 32 per cent drop in third-quarter net profit on Sunday, 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 34.9 per cent stake, reported a profit of Dhs68.7 million ($18.71 million) in the three months ending Sept 30, down from Dhs100.8 million in the corresponding period of 2013, it said in a statement to Dubai’s bourse.

Analysts at Global Investment House and SICO Bahrain had forecast Arabtec would make a quarterly profit of Dhs113 million and Dhs139.9 million respectively.

Quarterly revenue was Dhs2.4 billion, up from 1.94 billion a year earlier, but general and administrative expenses rose 89 per cent to Dhs241.6 million over the same period.

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.