Dubai’s Arabtec Returns To Profit in Q1 2017

Dubai’s Arabtec Returns To Profit in Q1 2017
People walk past the Arabtec headquarters in Abu Dhabi June 25, 2014. The spectacular rise and fall of Arabtec, Dubai’s most heavily traded stock, teaches hard lessons about how risky the region remains for investors even as its rapid economic growth lures billions of dollars in fresh funds from abroad. REUTERS/Stringer (UNITED ARAB EMIRATES – Tags: BUSINESS LOGO) – RTR3VP2Y

Leading UAE construction company Arabtec Holding returns to profits in its financial results of the 1Q of 2017 after two years of losses, according to Reuters

Arabtec made a net profit attributable to shareholders of  USD 4.9 mn in the first three months of Q1 ending March 31, compared to a loss of AED 46.4 mn in the prior-year period, a bourse statement said.

The profit came on higher revenues of AED 2.17 bn in the quarter versus AED 1.96 bn a year ago. Cost-saving measures included restructuring and job-cutting.

Last month, Arabtec got approval from shareholders for a AED 1.5 bn rights issue. Shareholders also approved plans to use existing capital to wipe out accumulated losses.

The company, which reported accumulated losses of AED 4.6 bn last year, is asking banks to waive terms on its debt, banking sources told Reuters last month.

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