Arabtec posts three and six-month falls in profits

Arabtec has seen revenues fall by more than AED1bn in a year.

RELATED ARTICLES: Arabtec inks deals for AED2.5b La Hoya Bay project | Arabtec chief: Gazprom tower still going ahead | Arabtec CEO blames media for Aabar deal collapse

Arabtec Holdings has seen net profits fall by more than a third over the last quarter and by almost a quarter over the last six months against the equivalent periods in 2009, according to its latest financial statement.

The UAE firm - whose subsidiaries include Arabtec Construction, the country’s biggest contractor - revealed that its after-tax profits for the first half of 2010 were AED301.7 million, down from AED393.3 million for the same period in 2009 – a fall of 23%.

Revenue for the last six months declined by more than AED1.1billion to AED2.833 billion, down 27%, led the overall fall in gross profits, which for the period stood at AED436.6 million, down from AED643.9 million.

Second quarter gross profit fell 49% from AED357.1milion to AED179.9 million, and net profits fell 34% from AED201.2 million to AED132.2 million.

Story continues below

Advertisement

FEATURED COMMENT Please click here to comment on this article

However, the statement also showed that it has seen an increase in business outside the GCC, based on construction project locations. Revenue from the Levant region increased from AED9.29 million to AED28.918 million in a year. Work in Pakistan caused revenue from that country to grow from AED488,000 to 3.47 million.

The company’s cash and cash equivalents position has increased in six months compared to the first half of 2009, up from AED542 million to AED641.7 million, as its net cash used in investing activities fell.

Arabtec Holdings has a market capitalisation of AED2.11 billion. Last April a proposed deal with Aabar Investments, which would see the vehicle take a 70% stake, was called off.

Its construction arm’s recent projects include the Burj Khalifa – the world’s tallest structure – the Sky Gardens Tower and the Burj Dubai Lake Hotel.

Yesterday the company’s stock closed up more than 1% to close at AED1.77.