Arabtec forecasts Dh1b profits

Dubai: Construction firm Arabtec expects to achieve overall profits of just over Dh1 billion by the end of the year as they move to increase liquidity within the company.

In the first nine months, Arabtec achieved profits of Dh760 million and expects to go over the Dh1 billion mark by the end of the year, according to Ziad Makhzoumi, chief financial officer.

Arabtec voted yesterday to issue one bonus share for every share already owned by its shareholders to increase liquidity within the firm.

Bonus share

Arabtec is also restructuring its balance sheets so that some profits can be moved in order to capitalise on them.

"For every share we issue, we have to take part of that profit, which is equivalent to Dh1 and add it to the shareholders funds. It's the equivalent of increasing our share within the market," Makhzoumi told Gulf News after the extraordinary general meeting (EGM).

This means that Arabtec will be raising funds internally rather than looking for external assistance.

The agreement also means the shares will be a liquid instrument so shareholders can decide what they want to do with the shares once they have been issued, said Makhzoumi.

Shares in Arabtec were trading yesterday at around Dh3.90.