The National reported that despite an annual improvement of 51% in second-quarter profits, Arabtec ran a cash deficit of US$340 million in the first half of the year. It had a net cash surplus a year earlier of about $26m.
The company’s $50bn backlog increases the risk that Arabtec may run out of cash during completion of major projects, analysts said.Nevertheless, Arabtec’s shares staged a cautious rally yesterday that pulled the Dubai Financial Market into positive territory after the release of its second-quarter earnings figures.
The company’s share price gained 1.25% to close at AED4.05, with the DFM closing up 1.89% yesterday.
The company said: “all decisions taken by [Arabtec’s leadership] aim at achieving the shareholders and investors’ interests, elevating the company’s position, increasing the revenues and achieving potential growth in future.”