Construction firm registers negative performance for third consecutive quarter
- Sharp increase in direct costs resulted in Arabtecs 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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