Dubai’s Arabtec reports seventh quarterly loss
Dubai-based contractor Arabtec reported a narrow loss in the second quarter of the year, it said in a statement on Sunday.
Marking its seventh straight quarterly decline, the firm made a net loss attributable to equity holders in the parent of AED186.4 million ($50.8 million) in the three months leading up to June 30, the statement said.
This compares with a loss of AED718.4m in the same period of 2015.
EFG Hermes had forecast Arabtec would make a quarterly net loss of AED83.2m, Reuters reported.
The struggle has largely been the result of a difficult industry environment, slowing economies in the Gulf and government restriction on spending due to low oil prices.
In June, shareholders agreed to use AED1 billion of the company’s statutory reserves to wipe out some of its accumulated losses.
Later in July, the listed company announced that it agreed to an AED400m ($109m) debt facility provided by one of its major shareholders, Aabar Investments.
This was intended to help the firm strengthen its financial performance so it can deliver awarded projects on time and break even this year.
Arabtec reported a net loss of AED46.4m during the first quarter of 2016 and a net loss of AED2.3bn for the full year of 2015.
The firm’s quarterly revenue was AED2.16bn, versus AED1.80bn a year earlier.