By: Mahmoud Gamal

Dubai – Mubasher: Arabtec Holding’s stock traded higher on Wednesday after the company disclosed positive financial results for the third quarter of 2018.

By 12:15 pm UAE time, Arabtec grew 1.33% to AED 2.29, its highest level in over six months.

Earlier on Wednesday, Arabtec posted a profit surge to AED 67.37 million ($18.34 million) in Q3-18 from AED 10.31 million ($2.81 million) in the year-ago period, while revenues reached AED 2.34 billion, up from AED 2.099 billion in Q3-17.

The Dubai-listed construction firm’s positive Q3 results have bolstered its stock and indicate that the company’s restructure is progressing well, analysts told Mubasher.

Arabtec’s income statement showed a significant improvement in debt levels, after the company reduced its net debt to equity ratio to 1.07x from 1.2x, commented Tarek Qaqish, head of asset management at MenaCorp Financial Services.

The statements also indicate improved cash flow, higher profit margins, and expenses reaching acceptable levels, the analyst told Mubasher, noting all this translates to a positive turnaround for the company.

It is worth noting that this is not Arabtec’s first gain this week. Since Sunday, the stock has jumped by as much as 11%.

Translated by: Nada Adel Sobhi