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Wed 15 May 2019 02:46 PM

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CEO of Dubai's Arabtec steps down as Q1 profits fall

Hamish Tyrwhitt leaves Dubai-based contracting giant Arabtec, replaced by chief financial officer

CEO of Dubai's Arabtec steps down as Q1 profits fall
Arabtec Holding has confirmed that Hamish Tyrwhitt has stepped down as group CEO.

Arabtec Holding, a Dubai-based contractor for social and economic infrastructure, on Wednesday announced that Hamish Tyrwhitt has stepped down as group CEO.

The company said Peter Pollard, the current group chief financial officer, has been appointed as the acting group CEO, without giving a reason for Tyrwitt's departure.

Prior to joining Arabtec Holding in April 2017, Pollard held various executiveroles in both the construction and property sectors in the UAE, Asia and Australia.

Arabtec's board of directors said in a statement: “We would like to take this opportunity to thank Hamish for his effortsand we look forward to supporting Peter in his role as acting GCEO. Peter has been instrumental in driving the company forward... will continue to focus on aligning our business with the UAE’s national agenda.”

The announcement comes as Arabtec Holding recorded a net profit of AED31.8 million, down from AED63 million a year earlier which at the time was its highest quarterly profit since Q3 2014.

Revenue totalled AED2 billion for the first quarter of 2019 while the group’s backlog stood at AED14.8 billion.

The company said it experienced a contraction in margins year on year during Q1, attributable to lower revenue from a slowdown in awards in the construction sector coupled with a number of legacy projects closing out in the coming months.

Additionally, the group recognised an AED7.8 million loss on its investment in Depa, the interior fit-out company which worked on Dubai's Burj Khalifa.

Arabtec said debt reduced by AED249 million in the quarter, adding that it is progressing with the refinancing of its term debt which will provide a sustainable platform.

Pollard said: “We remain confident that, with the strong pipeline of opportunities across our addressable markets, we will see more awards in the coming quarters across the construction and industrial sectors. We continue to focus selectively on countries that offer a strong, sustainable pipeline of construction, infrastructure and industrial
opportunities including the United Arab Emirates, Saudi Arabia, Bahrain, Kuwait and Egypt.”

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