Major cash deficit for Arabtec in Q2

28.07.2014
Arabtec ran a cash deficit of US$340 million in the first half of the year and appears to need a capital injection. Things don't seem to be looking up for Arabtec, which is likely to need a capital injection or new debt financing after its second-quarter earnings figures showed a significant worsening of its cash position, according to analysts.
The National reported that despite an annual improvement of 51% in second-quarter profits, Arabtec ran a cash deficit of US$340 million in the first half of the year. It had a net cash surplus a year earlier of about $26m.
The company’s $50bn backlog increases the risk that Arabtec may run out of cash during completion of major projects, analysts said.Nevertheless, Arabtec’s shares staged a cautious rally yesterday that pulled the Dubai Financial Market into positive territory after the release of its second-quarter earnings figures.
The company’s share price gained 1.25% to close at AED4.05, with the DFM closing up 1.89% yesterday.
The company said: “all decisions taken by [Arabtec’s leadership] aim at achieving the shareholders and investors’ interests, elevating the company’s position, increasing the revenues and achieving potential growth in future.”

Subscribe to our news

Latest Availability
Latest property news
Send us an enquiry or request a call back
Your name *
Phone
E-mail *
Your message *
*- indicates required
Request a call back