Emaar and Damac only UAE developers to make profits in Q4
The slowing economy and real estate market, coupled with reduced public spending and a weaker business sentiment, have put a damper on UAE developers’ quarterly profits.
Among the listed construction firms, Emaar Properties and Damac Properties were the only two companies to report positive figures for the fourth quarter of 2016.
Quarterly net profits of Arabtec, Aldar Properties and Drake & Scull fell significantly during the period.
The builder of the world’s tallest tower reported a 56 per cent rise in fourth-quarter net profit.
The developer, in which Dubai’s government owns a minority stake, made a net profit of AED1.61 billion ($438.4 million) in the three months to December 31. That compares with a profit of AED1.03bn in the year-earlier period.
Damac reported a 1.3 per cent rise in its Q4 net profit. The developer reported a net profit of AED854.6 million ($232.7m) for the period under review. This was up from AED844m reported for the year-ago period.
Full-year 2016 net profit was AED3.69bn, down from AED4.51bn in 2015, the company said in a statement sent out to the media.
The state-linked builder of Abu Dhabi’s Formula One circuit, reported a 0.9 per cent decline in fourth quarter net attributable profit.
Aldar made a net profit of AED727.9m ($198.2m) in the three months to December 31. That compared with a profit of AED734.6m in the prior-year period.
Dubai contractor Arabtec Construction reported a wider fourth-quarter loss as it made a net loss of AED2.95bn ($803.4m).
This compares with a net loss of AED403.74m in the corresponding period of 2015.
The company reported a net loss attributable to the shareholders of its parent Arabtec Holding of AED3.41bn for the year 2016, compared with a loss of AED2.35bn the year earlier.
Arabtec has been struggling for more than two years because of a sagging construction market, as well as internal strife among shareholders and a number of senior management changes.
Drake & Scull
Dubai-based Drake & Scull has said its net loss for the fourth quarter of 2016 amounted to AED490m, compared to a profit of AED14.7m a year earlier.
The contractor’s 2016 net loss amounted to AED786.9m ($214.4m), narrowing from a loss of AED938.8m in the previous year.
Revenues shrank to AED3.24bn last year from AED4.20bn in 2015.
(With inputs from Reuters. Figures in this story include those Reuters calculated from financial statements in the absence of a quarterly breakdown)