Dubai's Arabtec swings to Q2 profit as Depa investment helps

Dubai - General, administrative expenses more than halved in second quarter of 2017

Dubai builder Arabtec said on Wednesday that it had swung to a net profit in the second quarter, boosted by profits from its investment in interior designer Depa as well as by cost-cutting.
Arabtec made a net profit attributable to equity holders in the parent of Dh39.8 million ($10.8 million) in the three months to June 30, compared to a loss of Dh186.4 million a year ago.
It was Arabtec's second straight profitable quarter.
In an effort to turn around its business, the company appointed industry veteran Hamish Tyrwhitt as its chief executive last November. General and administrative expenses more than halved in the second quarter of this year.
Arabtec recorded profits from associates including Depa, in which it holds a 24.3 per cent stake, of Dh22.9 million in the second quarter compared with a loss of Dh34.8 million a year ago.
It announced a Dh1.5 billion rights issue earlier this year as part of its recapitalisation programme. Its cash flow statement shows proceeds from the rights issue were Dh1.1 billon after deducting the settlement of a loan from a related party.
Arabtec took out a Dh400 million loan from its largest shareholder, Abu Dhabi fund Aabar Investments, in June 2016. The company's financial statement says Arabtec settled the outstanding amount of the loan with the proceeds of the rights issue.