British giant Balfour Beatty has reported a 10 percent drop in its Middle Eastern construction revenue in the first half, in comparison to the same period last year.
The company said that the fall in the construction market in Dubai had resulted in the drop, although it praised the performance of its BK Gulf subsidiary in Abu Dhabi. Balfour Beatty operates in the UAE in partnership with Al Ghandi and Dubai Transport Company (Dutco).
“Revenue in the Middle East fell from $254m in the first six months of 2009 to $228m in the first six months of 2010 with significant reductions in the Dubai building and civil construction markets,” Balfour Beatty corporate communications director Duncan Murray told Arabian Business.
“There was a strong profit performance in the mechanical & electrical business (BK Gulf), particularly outside Dubai – in particular Abu Dhabi.
In its half-year results, the firm said that profits in the Middle East had been “in line” with last year, despite the revenue reduction.
Balfour Beatty’s global construction results increased by seventeen percent to $129m in the first half, boosted by results in South-East Asia and Europe. Revenue in the US dropped by 22 percent following a reduced order book
Overall, Balfour Beatty’s order book for construction services stood at $13.3bn, a four percent increase on last year.
The acquisition of US project management outfit Parsons Brinckerhoff pushed the company’s overall profits up 32 percent to $220m.
“We are reporting another strong performance in the first half of 2010, said CEO Ian Tyler.
“We have a high-quality order book of £14.6 billion [$22.8bn] at June 2010 and a number of opportunities in the second half of the year. This, along with the actions taken and proposed to drive efficiency, means we are well-positioned to manage any challenges in individual markets. Our continuing progressive dividend policy reflects our confidence in the Group’s ability to deliver growth over the medium term.”
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