Dubai’s Arabtec Group maintained its run of positive results, reporting its six consecutive quarter of profitability today.
The developer's profits reached AED 113 million ($30.76 million) in the first half of 2017, up 97 percent from the AED 57 million ($15.52 million) in profits recorded in the same time period in 2017, the company has announced.
Total revenue in H1 2018 was 4.8 billion ($1.3 billion), a 13 percent year-on-year increase.
According to the company’s results, the group’s backlog stands at AED 16.1 billion ($4.38 billion), bolstered by AED 34.6 billion ($9.41 biillion) of tenders submitted or under preparation. The company's Q2 net profit was AED 49 million ($13.34 million), compared to 40 million ($10.89 million) in Q2 2017.
Additionally, in Q2 2018, trade and other receivables decreased by 223 million ($60 million), with a 17-day improvement in debtor days, which produced positive net cash from operating activities of AED 206 million ($56 million).
Arabtec’s focus, it said in a statement, “continues to focus selectively on countries that offer a strong, sustainable pipeline of construction and infrastructure opportunities”, including the UAE, Saudi Arabia, Bahrain and Egypt.
“I am delighted to report a strong first-half performance which has seen the group deliver six consecutive quarters of profitability,” said group CEO Hamish Tyrwhitt.
“It is also pleasing that we are now seeing a reduction in trade receivables and debtors days, reflecting the group’s ongoing efforts to improve the resolution and collection of receivables.”
Tyrwhitt added that the company is making “good progress” on simplifying its business model by outsourcing non-core business activities and implementing “innovative” approaches to construction.
Among the company’s priorities in 2018 was the improvement of cost savings and benefits through integrated supply chain management, as well as to explore ways to reduce waste through the modularisation of building design.
Arabtec’s H1 2018 project awards include a AED 628 million ($170.97 million) deal for villas at Akoya Oxygen, a AED 433 million ($117.88 million) contract for Dubai Municipality infrastructure, an AED 117 million ($31.85 million) Creekside Horizon project in Dubai and the AED 157 million ($42.74 million) Uptown Cairo in Egypt.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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