Abu Dhabi: Real estate developer, Arabtec Holding, reported a net profit of Dh103 million for the second quarter of this year, marking an 11 per cent increase over the same period last year when net profit stood at Dh92 million.
Revenues for the second quarter of 2014 jumped to Dh2.4 billion, recording a 51 per cent rise over the Dh1.6 billion during the second quarter of 2013.
A statement released by the company attributed the profit to the progress of projects, and business growth in the UAE and Gulf markets.
Meanwhile, profits for the first half of 2014 was Dh240 million, increasing annually by 55 per cent, as the first half of 2013 amounted to Dh155 million.
As for revenues for the first half of 2014, they stood at Dh4.5 billion — a 45 per cent gain over the Dh3.1 billion by the end of June 2013.
The recorded profit margin to the total profits increased from 11.8 per cent by the end of the first half 2013 to 14.5 per cent by the end of the first half of 2014.
On Sunday, Arabtec share prices went up 1.25 per cent on the Dubai Financial Market to reach Dh4.05. The rise in share prices follows five consecutive sessions of decline that saw Arabtec end the past week with a total of a 20.61 per cent fall.
Slightly weaker
Saleem Khokhar, head of equities at the National Bank of Abu Dhabi asset management group, commented on Arabtec’s financial results saying, “It was slightly weaker than what the market was expecting, but it’s nothing to worry about really.”
Khokhar said the company’s costs were higher than expected due to end-of-service payments to the former chief executive officer and the other high-level staff that exited towards the end of June. He added that if such costs are eliminated, Arabtec’s overall financial statement is encouraging.
“Arabtec, I think, is pretty solid in terms of the outlook and the fundamentals. Obviously, we still need a little bit of clarity on the stake of the ex-CEO, which I think will be forthcoming; it’s just a matter of negotiations. The projects are fine, and the connection with Abu Dhabi is positive, so I think the outlook is quite good,” Khokhar said.
Last week, Aabar announced that it was “considering many strategic options regarding investments in Arabtec.” The company did not confirm, however, whether or not it would buy part of a 28.9 per cent stake by former CEO, Hasan Ismaik, who remains the largest investor in Arabtec.
