By Gavin Gibbon
Group chief financial officer Adel Al Wahedi has resigned from the troubled construction giant
Arabtec Holding reported a AED774 million ($211m) loss for 2019, a substantial drop from the AED256m ($70m) profit announced in 2018.
The losses were attributed to Arabtec Construction, while other core businesses, including Target (industrial), Arabtec Engineering Services (infrastructure) and EFECO (MEP) were said to be trading profitably.
Arabtec blamed the losses on tight liquidity in the real estate and construction sector; a slowing real estate sector resulting in limited new awards; the settlement and recoverability of claims, and estimated losses from investment in an associate company – the identity of the company was not revealed.
Revenue fell 21 percent to AED7.785bn for the 12-month period.
A statement from the company said: “Since Q3 FY2019, Arabtec Construction has handed over six legacy projects and is confident that it will hand over an additional nine legacy projects by the end of 2020. This will significantly reduce the group’s risk around costs and will allow Arabtec to fully focus on pursuing its contractual entitlements with clients.”
Discussions and due diligence relating to the potential merger with Trojan, which was announced in September last year, are “ongoing”.
The statement added: “The group continued to reduce debt in 2019 and is working closely with key lenders to align its debt with its business needs. The group continues to right-size its workforce, reducing manpower and support functions in line with the operational requirements of the business, reducing cost and improving productivity and efficiency for the group.”
The construction giant also revealed on Sunday that group chief financial officer, Adel Al Wahedi, had resigned. Wahedi had been in the role since July last year.
Boyd Merrett resigned as chief executive officer of Arabtec Construction in October last year. Merrett had been in the position since July 2017 and was replaced “until further notice” by Wail Farsakh, the former general manager of Dutco Balfour Beatty, who was only appointed group chief operating officer in September 2019.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.