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MIDEAST STOCKS-Disappointing corporate earnings may dampen UAE but award could boost Dana
February 14, 2017 / 5:57 AM / 10 months ago

MIDEAST STOCKS-Disappointing corporate earnings may dampen UAE but award could boost Dana

Feb 14 (Reuters) - Weak company earnings from the United Arab Emirates look set to dampen market performance there on Tuesday while an overnight fall in crude oil prices may restrain other regional markets. However, Abu Dhabi’s Dana Gas may surge on news of an arbitration award.

Abu Dhabi’s Aldar Properties reported a 0.9 percent decline in fourth quarter net attributable profit to 727.9 million dirhams ($198.2 million), at the higher end of forecasts; SICO Bahrain had forecast Aldar would make 496.0 million dirhams and EFG Hermes, 849.0 million dirhams.

But Union National Bank made a quarterly net profit of 251 million dirhams, a 29 percent rise from the prior-year period but missing analysts’ estimates of 310.0 million dirhams and 373.36 million dirhams. The bank’s board proposed a 20 percent cash dividend for 2016, the same as for 2015.

Dubai’s Drake & Scull swung to net loss in the fourth quarter of 490 million dirhams after making a net profit of 14.7 million dirhams in the prior-year period.

DSI said that as part of its turnaround and capital restructuring plan, it was considering proposing a rights issue of 500 million dirhams in equity to a strategic investor, and that it had secured a binding offer from a local investment firm. Shares in the contractor slumped by their 10 percent daily limit on Monday.

Dana Gas said it had received a third award from a London arbitration tribunal in its dispute with the Kurdistan Regional Government, and that the KRG had been ordered to pay claimants including Dana $121 million, while the court dismissed the KRG’s counterclaims.

Brent oil futures fell overnight, hitting a session low of $55.41 a barrel. They have since climbed slightly higher, trading at $55.66 at 0543 GMT. (Reporting by Celine Aswad; Editing by Andrew Torchia)

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