Arabtec surges after profit tops estimates

Arabtec Holding Co, the biggest listed construction contractor in the UAE, jumped more than five per cent after 2013 profit almost tripled, beating estimates.

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By Sarmad Khan (Bloomberg)

Published: Thu 20 Mar 2014, 11:23 PM

Last updated: Tue 7 Apr 2015, 10:30 PM

The shares gained as much as 5.7 per cent to Dh5.58, their highest level since August 2008, before closing at Dh5.55. Full-year profit climbed to Dh377 million ($103 million) from Dh139 million a year earlier, beating the Dh313 million mean estimate of 11 analysts compiled by Bloomberg.

Arabtec’s board recommended a 10 per cent cash dividend and 30 per cent bonus shares. Dubai’s benchmark DFM General Index rose 0.5 per cent on Wednesday.

A resurgence in the UAE real-estate market, where prices more than halved from their 2008 peak during the financial crisis, is boosting profits at contractors.

Prices for mid-range apartments rose 43 per cent in 2013, according to Cluttons LLC data. Arabtec is expanding into international markets, while at home it’s set to benefit as Dubai plans $8 billion of infrastructure spending in preparation for World Expo 2020.

Sarmad Khan (Bloomberg)

Published: Thu 20 Mar 2014, 11:23 PM

Last updated: Tue 7 Apr 2015, 10:30 PM

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