UAE-based Arabtec, a leading construction firm, on Sunday reported a net profit of Dh241.6 million ($65.7 million) for full-year 2014 versus Dh468.3 million ($127.4 million) in the previous year, marking a decrease of 48.4 per cent.

The builder, in which Abu Dhabi state fund Aabar Investments owns a 36.11 per cent stake, swung to a net loss of Dh94.4 million ($25.7 million) in the fourth quarter of last year, as high costs weighed on its bottom line.

It did not provide quarterly figures in the statement, but Reuters calculations based on its previous financial statements showed the company swung to a fourth-quarter loss from a Dh122.1 million ($33.2 million) profit in the prior-year period.

Two analysts polled by Reuters had forecast Arabtec would make a quarterly profit of Dh107.3 million ($29.4 million) and 122 million ($33.2 million).

Last year's profits were hit by non-recurring general and administrative expenses, which jumped 75 per cent to Dh749.9 million ($204 million), the company said.

Arabtec reorganised itself and laid off some executives and staff after the abrupt departure in June last year of former chief executive Hasan Ismaik, who resigned after differences of opinion with Aabar. The Abu Dhabi fund then raised its stake in Arabtec, which the statement on Sunday said showed government support for the company.

Last year's revenues climbed 46 per cent to Dh8.3 billion ($2.25 billion). Because of the higher expenses, dividends attributed to the parent company for 2014 will fall to Dh214.5 million ($58.3 million) from Dh377.8 million ($102.8 million), but Arabtec said its board was also proposing a 5 per cent bonus share issue.

To boost revenues, the company plans to rent out some of its office space at the World Trade Centre in Abu Dhabi, space which was not used in the last two years, it said.

Arabtec said it was in the final stages of concluding a contract, previously estimated at $40 billion, to build one million housing units in Egypt. The project was originally announced early last year but the company has not yet reached final agreement on terms with the Egyptian government.

Meanwhile, the company has suspended its operations in Russia and Pakistan to reduce costs, the statement said.

Arabtec also said it would explore opportunities for acquisitions, especially in fields that served its expansion strategy. It did not name any potential targets; Ismaik frequently talked of acquisitions but the management which replaced him has been more cautious. – Reuters