Drop in contract awards drives 49% decline in Arabtec's H1'19 profit
The company’s half-yearly backlog stood at $3.8bn and total debt declined by $101.6m in the first six months of 2019
Dubai-listed engineering and contracting firm Arabtec has posted net profit of $15.8m (AED58m) in the first half of 2019, with the company attributing the 48.8% drop in profit to “a decrease in awards in the construction sector” in the same period, in addition to “a number of legacy projects completing through 2019”.
In a stock market filing, the company stated that it posted revenues of $1.1bn (AED4.2bn) in H1 2019, which tumbled by 12.4% compared to corresponding figures in the first half of 2018.
The company’s half-yearly backlog stood at $3.8bn (AED14bn) and total debt declined by $101.6m (AED373m) in the same period.
Commenting on the half-yearly financial results, group chief executive officer of Arabtec, Peter Pollard, said: “During the first half of the year, we have secured new contracts in the industrial sector which we expect to continue given the strength of the pipeline.”
Pollard added: "I am pleased with the progress we are making on completing a number of legacy projects that have been with the group for a number of years."
The group CEO noted that the handover of many of the legacy projects is imminent.
“We also remain focused on diversifying our backlog geographically and we are selectively evaluating opportunities in other GCC countries and MENA region,” Pollard added.
In the filing, the company said major contract wins in H1 2019 included: $85.8m (AED315m) contract for the Bu Hasa project; $59.6m (AED219m) Navin Minar; $56.3m (AED207m) Villanova project; $52.3m (AED192m) Wilton Park; and a contract worth $46m (AED169m) for Expo 2020 Dubai.