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Arabtec Profits Down 80 Percent
12.05.2011 by Hassan Shahin
Arabtec, the United Arab Emirates largest construction firm with offices in Abu Dabai, Jordan, Qatar, Syria, Saudi Arabia, Palestine and Russia, announced profits totaling Dh26.6 million for the first quarter, emphasizing weakness in the construction industry in the Middle East. Arabtec posted net profits for the first quarter totaling Dh26.6 million, down 80% from Dh134.5 million from the same quarter last year. Despite the decrease in profits, Ziad Makhzoumi, CFO of Arabtec expresses overall satisfaction with the company’s performance stating the company has “more cash and borrowing has come down.” He attributes the decrease to delayed projects in Egypt and Bahrain but states the “whole market is going through a major restructuring and new sectors are opening up, particularly in Abu Dhabi and Saudi Arabia.” Mr. Makhzoumi believes the company is well positioned to witness growth over the next year.
Shares of Arabtec were down 1.41%. Credit Suisse is maintaining its neutral rating for the company. It expects “margins to deteriorate further on the back of increased competition in the GCC and potential contract negotiations.”