Arabtec reports Q4 loss as shares plummet
the company’s board is currently seeking shareholder approval for a AED1.5bn ($408.4m) rights issue to recapitalise the company, Reuters reports
Dubai-based contractor Arabtec reported a wider fourth-quarter loss as its shares dropped almost 10% at the open after results were disclosed on Monday.
According to Reuters, the company’s board is currently seeking shareholder approval for a AED1.5bn ($408.4m) rights issue to recapitalise the company.
Arabtec made a net loss of AED2.95bn ($803.4m) in the three months to 31 December, comparing with a net loss of AED403.74m in the corresponding period of 2015, Reuters data revealed.
The company reported a net loss attributable to the shareholders of its parent of AED3.41bn ($928m) for the year 2016, compared with a loss of AED2.35bn the year earlier.
Sources reported that contractor has enlisted the assistance of boutique investment bank, Moelis, to study options for its capital structure.
The move is said to follow work conducted in collaboration with AlixPartners towards the end of 2016, in an effort to reduce overheads at the UAE-headquartered contractor.
The results were released after a second board of directors meeting was held on 12 February, nearly a month after the first meeting, in which shares for the company were halted for nearly a full day.
Arabtec has been struggling for the last two years due to a slowdown in the market, internal conflict among shareholders and a number of managerial changes and restructuring.