Arabtec, the UAE’s largest builder by market value reported Q2 loss as costs and expenses increased.

The Dubai based firm made a net loss of AED 11.6 million compared to a profit of AED 29 million a year earlier while revenue increased to AED 1.3 billion from AED 1.2 billion. Contracting costs increased to AED1.2bn from AED1bn while administrative expenses rose 62% to AED 154.2 million from AED 95 million.

The builder said that it had acquired the remaining 45% stake in Gulf Steel Industries for AED 18 million. Arabtec which along with Turkey’s TAV Insaat and Athens based Consolidated Contractors Company secured AED 10.8 billion contract to build a terminal at Abu Dhabi Airport in June. Construction is due to begin in the Q3 and is scheduled to be completed in 2017.

Abu Dhabi state fund Aabar recently increased its stake in Arabtec to 21.6% promoting a surge in stock. Shares have increased 99% this year compared to 15% increase for the benchmark. Aabar which owns stakes in Daimler and Glencore, has been quietly increasing its holding in the builder this year through market purchases.

A June statement said that Arabtec may secure joint projects from Aabar on the back of USD 2 billion deal signed between the investment fund and China State Construction Engineering Corp this year. The deal will develop real estate projects in Abu Dhabi and identify potential joint projects including those in which Arabtec Holding may be involved.

Source - Arabian Business.com

(www.steelguru.com)