Contracting giant Arabtec says decrease in awards in the construction sector result in 48% fall in net profit for first six months of 2019
Dubai-based contracting giant Arabtec Holding on Wednesday recorded a net profit of AED58 million on revenue of AED4.2 billion for the first half of 2019.
The company said total revenue declined by 12.4 percent and net profit fell by 48.8 percent compared to the same period last year.
It said this reduction was mainly attributed to a decrease in awards in the construction sector in H1 in addition to a number of legacy projects completing through 2019.
Arabtec added that its backlog remained strong at AED14 billion despite a decline in new awards during the first half of 2019.
Total debt was reduced by AED373 million in H1 and net debt to equity ratios improved.
Group CEO, Peter Pollard said: “We remain committed to our strategy of diversifying our backlog across the infrastructure and industrial sectors. During the first half of the year, we have secured new contracts in the industrial sector which we expect to continue given the strength of the pipeline.
"With a particular focus on strengthening our balance sheet, we continue to reduce our debt by AED373 million during H1 2019. I am pleased with the progress we are making on completing a number of legacy projects that have been with the Group for a number of years.
"Many of these projects are about to be handed over in the coming months which will allow us to better focus on our current projects and securing new profitable projects.
"Our strong pipeline of tender opportunities coupled with Arabtec’s long- standing market reputation provides us with a strong base to grow the company and deliver on our strategic roadmap. We also remain focused on diversifying our backlog geographically and we are selectively evaluating opportunities in other GCC countries and MENA region.”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.