By: Bedour Alraei
Dubai – Mubasher: Arabtec Holdings’ stock saw a “steep” decline following the announcement of annual financial results for the fiscal year 2016.
The company’s stock fell 9.85% to AED 1.19 by 11:00am UAE time, with a turnover of AED 12.64 million generated from the exchange of 10.62 million shares.
Arabtec Holding reported a 99% rise in its losses to AED 2.99 billion ($813 million) in Q4-16 from AED 438 million ($119.216 million) in Q4-15. In addition, net losses increased to AED 3.512 billion in 2016 from AED 2.778 billion in 2015.
"The group’s net loss resulted from a combination of impairment charges on high-risk items, which amounted to AED 2.8 billion, as well as recurring, non-recurring and operational expenses," the company said in a statement.
The real estate sector also sank 1.38% due to a decline in Drake and Scull International (DSI), Emaar Properties and Union Properties by 0.52%, 3.81% and 1.38% respectively.
Arabtec posted disappointing results, suffering losses for the ninth quarter in a row after recording its highest losses in Q4-16, Wadah Al-Taha, member of the National Advisory Board of Chartered Institute for Securities &Investments (CISI), told Mubasher
The company’s accumulated losses till 2016 exceeded AED 5 billion, representing 110% of the capital, Al Taha added.
Translated by: Julian Nabil
