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Thu 15 Mar 2018 02:08 PM

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Fortunes at Dubai's Arabtec rebound to post 2017 net profit

Construction giant turns around huge losses, plans to pay first cash dividend since 2012

Fortunes at Dubai's Arabtec rebound to post 2017 net profit

Arabtec Holding on Thursday announced revenue of AED9.1 billion ($2.5 billion) for 2017, with net profit of AED123.1 million for the full year.

The Dubai-based construction giant also announced plans to pay out a cash dividend to sharedholders for the first time since 2012.

The company reported a net loss of AED3.41 billion for the year 2016, and a loss of AED2.35 billion the year earlier.

After several tough years due to a slumping regional construction market and internal management changes, Arabtec's fortunes appear to have improved over the past year or so as it has picked up a spate of new contracts.

The company helped build the Louvre Abu Dhabi, which opened last year. It said its backlog of projects at the end of December stood at AED17.2 billion, adding that there was a "solid" pipeline of future tender opportunities.

Arabtec said it stabilised the business in 2017, while refocusing on the group’s vision and values.

"This was vital to the future of the business following the significant challenges Arabtec faced in 2016," the company said in a statement.

In June, the company raised AED1.5 billion through a rights issue and extinguished the company’s accumulated losses through a capital reduction.

Group CEO Hamish Tyrwhitt said: "To support the delivery of our key objectives, we have strengthened our management team through a number of key senior appointments that have brought significant regional and international experience to the group.

"This is positively impacting the business through a more performance-driven culture with clearer accountability driven by rigorous project and business reporting together with regular reviews and a strong emphasis on cash collection and closing out legacy projects.”

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