Arabtec reports third consecutive quarter of profit

09 November 2017
The company made a net loss of AED458m during the first nine months of 2016

Dubai-listed construction company Arabtec Holding made a net profit of AED75m ($20m) for the first nine months of this year on revenues of AED6.346bn.

During the third quarter Arabtec made a profit of AED17.8m, which is the third consecutive quarter of profit after two years of losses.

The nine months of profit is a major turnaround for the company which made a net loss of AED458m during the first nine months of 2016. Revenues also improved by 3.2 per cent when compared to the same period of last year.

Arabtec secured several new contracts in Dubai during the third quarter. They include a AED628m deal to build 1,296 villas at Akoya Oxygen for Damac Properties, a AED368m contract to build a mall next to the Expo 2020 site for Emaar Properties and Dubai World Trade Centre, and a AED196m contract for the first phase of the Forte development in Downtown Dubai for Emaar.

The company’s backlog is AED16.8bn, and it says that is has a solid pipeline of tender opportunities.

To further streamline its operations Arabtec is continuing to divest some of its operating companies. During the third quarter of this year is sold its 14.6 per cent stake in Jordan Wood Industries, which manufactures office and household furniture.

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.