August 14, 2019 / 5:50 AM / 9 days ago

Dubai developer DAMAC Properties, contractor Arabtec Q2 profits drop

DUBAI, Aug 14 (Reuters) - Property developer DAMAC Properties Dubai Co PJSC reported a nearly 87% drop in second-quarter net profit on Wednesday, hurt by the emirate’s slumping property market.

DAMAC, owner and operator of the only Trump-branded golf club in the Middle East, said in a statement its net profit in the three months ended June 30 fell to 50.6 million dirhams ($13.78 million) from 378.2 million dirhams a year ago.

The results still beat analyst expectations from regional investment bank EFG-Hermes, which expected the developer to report a profit of 37 million dirhams.

Revenue fell 45.7% to 971.1 million dirhams.

Dubai property prices have fallen since a mid-2014 peak, hurt by weaker oil prices and muted sales.

In a separate disclosure, Dubai-listed contractor Arabtec Holding reported a 47.2% drop in net profit for the second quarter to 26.1 million dirhams.

Revenue declined to 2.19 billion dirhams in the quarter, compared with 2.39 billion dirhams in the same period a year earlier.

S&P Global Ratings expects the downturn to continue this year, with residential property prices falling another 5%-10% due to a continued gap between supply and demand, before steadying in 2020. ($1 = 3.6728 UAE dirham) (Reporting by Hadeel Al Sayegh in Dubai; Editing by Rashmi Aich)

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