Thank you oil prices? Arabtec profits 'more than double'
Dubai builder Arabtec said its first-quarter net profit more doubled on the back of a strong delivery of projects and growth in its Gulf businesses.
The contractor, in which Abu Dhabi state fund Aabar owns a major stake, is planning a series of acquisitions and mergers, CEO Hasan Ismaik said in a statement.
It is targeting global players in high-margin sectors such as oil and gas, power plants, infrastructure, and facility management of huge industrial plants, he said.
Arabtec made a net profit of AED138 million ($37.57 million) compared with AED62.5 million a year earlier. The earnings beat estimates of analysts polled by Reuters who forecast an average profit of AED116.3 million.
Revenue for the quarter rose 39 percent to AED2.152 billion.
Arabtec is trying to evolve from a local contractor into a multinational development company as its finances are boosted by a recovery in Dubai’s property market and its closeness to Aabar.
It announced plans to list a portion of its construction unit in an initial public offering in Abu Dhabi next year.
- Too pricey? MENA property hikes are off-putting for new buyers
- Fleeing war? UAE is the safe haven: Dubai property market is safe and secure according to a top banker
- CEO of the UAE's top developer, MAF Properties talks money and retail
- The top five mistakes committed by real estate agents
- After bringing down Dubai's Finanicial Market by $30 billion, what does Arabtec's downfall really tell us?
- Stepping out, completely: Arabtec's ex-CEO agrees to sell stake to Aabar
- A free fall? Arabtec falls another 10% in first 20 minutes of trading
- Arabtec to extend $650m rights period
- Post-crisis honeymoon over? First Jordanian billionaire quits Arabtec's CEO post over plunging shares
- Saudi hospital construction tender awarded at $107 million