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.
You might also like...
Policy designates Masdar, Adnoc as hydrogen coinvestors
29 March 2024
Waste energy projects find relevance
29 March 2024
Iraq signs five-year gas deal with Iran
29 March 2024
Iraq pushing forward with refinery project
29 March 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.