UPDATE 1-UAE's Union Properties posts $41.5 mln Q3 loss

DUBAI, Nov 15 (Reuters) - Dubai's Union Properties made a net loss of 152.3 million dirhams ($41.46 million) in the third quarter, its second consecutive quarterly loss, blaming lower revenues and provisions against contracting-linked losses. The third-largest developer in the Gulf Arab emirate made a net profit of 224.7 million dirhams in the third quarter of last year, it said in a statement on the bourse website on Sunday. Union Properties booked 125 million dirhams against contracting losses in the third quarter as the global financial crisis continues to weigh on Dubai's property and construction sectors. "This could potentially affect the ability of the group's contracting related activities to recover fully certain receivables on work done and certified and work done yet to be certified," it said. "Accordingly, a provision for an additional amount of 125 million dirhams has been created for contract receivables to mitigate any potential losses which may be incurred in future." Dubai-listed Union Properties' stock closed 1 percent lower at 0.97 dirhams on Sunday. "The encouraging thing is that the company's cash position has increased in Q3 - we're not really looking at the stock from a fundamental perspective but from one of survival," says Ali Khan, managing director and head of brokerage at Arqaam Capital. Dubai's once-booming property sector suffered a sharp slowdown as prices fell, developers cancelled or delayed projects due to the global economic downturn. (Reporting by Raissa Kasolowsky and Rania Oteify; Editing by Hans Peters) ($1=3.673 Uae Dirham) Keywords: UNIONPROPERTIES EARNINGS/ ([e-mail]; Reuters Messaging: [e-mail]; [phone]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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