Arabtec Holding PJSC, the United Arab Emirates’ biggest construction company by market value, reported a 40 percent decline in second-quarter profit as the building boom in Dubai slowed after the global financial crisis.
Net income dropped to 111.1 million dirhams ($30 million), or 11 fils a share, from 183.9 million dirhams, or 15 fils, a year earlier, Arabtec said in a statement to the Dubai bourse today. The average estimate of six analysts was for a profit of 144 million dirhams, according to data compiled by Bloomberg. Revenue in the quarter fell to 1.28 billion dirhams from 2 billion dirhams, the company said.
Building companies in Dubai are struggling after property developers halted or canceled projects costing billions of dollars because of falling prices. Nakheel PJSC began in June making 40 percent cash payment payments to its contractors as the Dubai World-owned company seeks to alter terms on $10.5 billion of unpaid bills and loans.
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