(MENAFN - Khaleej Times) Arabtec Holding, the UAE's biggest construction company by market value, posted a 10.5 per cent fall in third-quarter profit on Tuesday and said it was looking at equity-linked fundraising options.
The company, which signed a Dh453 million contract in October to build Europe's tallest office tower in St. Petersburg, made a profit of Dh35 million in the three months to September 30, compared with Dh39.1 million in the same period in 2011.
According to its financial statement posted on the Dubai bourse, revenue for the quarter was Dh1.4 billion, up 27.3 per cent on the same period last year.
Global Research said Arabtec's results were lower than its estimates of Dh58 million profit for the quarter. The profit was lower because of higher deduction of minority interest at 32.6 per cent of the income in third quarter compared to 16 per cent in first quarter.
"Company witnessed recovery in gross and operating margins both on year on year and quarter to quarter basis to 10.9 per cent and 2.4 per cent respectively," Global research said in its analysis.
Arabtec is contemplating on increasing its capital and/or issuance of convertible bonds to fund its expansion and restructuring activities.
In a separate statement to the bourse, the company said the board was considering funding options available to the firm, which could include a capital increase or a convertible bond issue.
Arabtec had previously said it was looking at such equity-linked fundraising but cancelled the plan in March 2011 because of political unrest in the region related to the Arab Spring.
Arabtec was forced to book a Dh19 million deficit as it transferred onto its income statement the shift in value after the sale of a portion of its sukuk holding in state developer Nakheel.
In October, Arabtec inked the deal with OAO Gazprom, or OGZD, to provide enabling works on what will become Europe's tallest office building at 463 metre-high - the 85-storey Gazprom Tower.
The builder, which derived all revenues from the GCC last year, said it expected to win more projects in Russia.
Arabtec's Target Engineering Construction unit also won Dh270 million of contracts in Abu Dhabi and Qatar, the company said in a separate statement. The construction company has gradually shifted its focus to Saudi Arabia and Qatar over the last few years as its home market Dubai continued to be impacted by the property market collapse. However, a gradual recovery has prompted some developers to restart stalled projects.
A consortium comprising Arabtec, Turkey's TAV Insaat and Athens-based Consolidated Contractors Co. won a 2.9 billion (Dh10.6 billion) contract to build a terminal at Abu Dhabi's international airport. The group also secured financing for the project.
This contract swelled Arabtec's backlog to Dh17 billion.
Arabtec shares - buoyed earlier this year as Abu Dhabi investment firm Aabar built a 21.6 per cent stake - had risen 67.7 per cent year-to-date by Monday's close.