• Sharp increase in direct costs resulted in Arabtec’s second-quarter revenue for 2015 falling 8.1 per cent on the same period in 2014
  • Arabtec says the second-quarter losses were largely due to direct costs increasing by 31 per cent year-on-year

Arabtec has recorded losses for the third consecutive quarter, with a sharp increase in direct costs resulting in second-quarter revenue for 2015 falling 8.1 per cent on the same period in 2014.

The UAE-based construction firm, which has experienced major restructuring and management challenges over the past 15 months, said its quarterly revenue from continuing operations to 30 June 2015 was at AED1.8bn ($489bn).

In an official company statement to the Dubai Financial Market, Arabtec said the second-quarter losses were largely due to direct costs increasing by 31 per cent year-on-year.

The company made a net loss of $195.6m attributable to equity holders in the parent company, which is a far cry from the $28m profit it made during the same period in 2014.  

An Arabtec statement cited that they have adopted a more conservative approach in terms of recognising revenues, costs and profit, and that the benefits of its restructuring programme will be reflected in its fourth-quarter results.  

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