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Mon 14 Nov 2016 10:26 AM

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Dubai contractor Arabtec reports narrowing Q3 net loss

Arabtec Group will continue to implement cost reduction and transformation programme "to ensure lean operations and better position the group in the current challenging market conditions"

Dubai contractor Arabtec reports narrowing Q3 net loss

Dubai construction firm Arabtec Holding reported a narrower third-quarter net loss on Monday as it cut costs and increased revenue.

The company made a loss of 225.5 million dirhams ($61.4 million) attributable to the owners of the parent in the three months to Sept. 30, compared with a 944.8 million dirham loss in the same period of last year, according to a bourse filing.

Revenue grew by 24.8 percent year on year to 2 billion dirhams.

During Q3 2016 Arabtec secured a number of new projects, including a five star hotel in Dubai Media City, to increase its new project wins for 2016 to $2.5 billion (AED9.4bn, Arabtec share $2bn - AED 7.6bn).

Arabtec, which had a backlog in Q3 amounting to $5.4 billion (AED20bn), completed and handed over Saraya Towers
in Abu Dhabi during the quarter, and in is also "in the final stages of completion of the land ark project the
Louvre Museum in Abu Dhabi".

During Q2 and Q3, the group commenced construction works for
a number of major projects including Bahrain International Airport, West Yas villas, 1,100 villas
for UAE Nationals in Fujairah, as well as the new projects that awarded
recently, 500 villas project for UAE Nationals in Oud Muteena, twin towers
project in central Dubai and Media City Hotel in Dubai.

Arabtec Group said it continues to implement cost reduction and
transformation programme "to ensure lean operations and better position the
group in the current challenging market conditions".

"Besides restructuring processes and cost reduction programme during 2016
the group has focused on improving and developing the company’s performance by
establishing operational standards in order to improve operations and ensure
high level of clients’ satisfaction, said Eng. Saeed Mohamed Al Mehairbi, acting CEO of Arabtec Holding.

"In this regard, we are proud of the level of completion and
work progress at the Louvre Museum Project as we constantly strive to complete
this landmark project and ensuring that it will be delivered in accordance with
the highest quality standards," he added.

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