Wednesday, Jan 04, 2012
(Adds background, share price in paragraphs 4 to 6.)
DUBAI (Zawya Dow Jones)--Dubai-based Arabtec Holding (ARTC.DFM) said Wednesday it won a 561 million U.A.E. dirham ($152.7 million) contract from Dubai Aviation City Corp. to carry out infrastructure works related to the Dubai International Airport expansion project.
The project, which includes structural works, mechanical engineering and plumbing, and site works at Terminal 2 of Dubai International Airport, will have a duration of 25 months once it commences, Arabtec said in a statement posted on the Dubai Financial Market website.
"This project demonstrates Arabtec's track record in carrying out infrastructure works for airports where this is the 12th project awarded to Arabtec relating to civil aviation work," Greg Christofides, chief executive of Arabtec, said in the statement.
Arabtec along with other contractors was hit hard by a severe downturn in Dubai's property market where prices have slumped by more than 50% in some areas since peaking in 2008 and many projects are now on hold or cancelled. The company has in recent times increasingly looked to diversify away from dependence on contracts in the U.A.E., tapping new markets such as Saudi Arabia, Pakistan and Egypt.
Analysts at Cairo-based Beltone Financial expect the Dubai-based contractor to post a 59.3% year-on-year decline in fourth quarter profit as revenues shrink.
Arabtec shares last traded 1.2% lower at AED1.63 Wednesday, after rising nearly 6% in the previous session.
-By Brinda Darasha and Tahani Karrar-Lewsley, Dow Jones Newswires; +9714 446-1688; Brinda.Darasha@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
04-01-12 0812GMT
