Arabtec announces 171% rise in profits to $102mn
Total value of announced projects for 2014 exceeds $49bn
Arabtec Holding PJSC has seen profits soar by 171% in 2013 to AED377mn ($102mn).
Announcing its financial results for the 12-month period ending 31 December 2013, the Dubai-based engineering and construction group also recommended a dividend distribution of 40% to shareholders; 10% cash and 30% bonus shares.
Arabtec witnessed full-year revenue rise 30% from 2012 to AED7.4bn ($2bn). Net income was also up 149% to AED468mn ($127mn); as was full-year gross margin, which improved from 10% to 12%.
Revenue for the fourth quarter of 2013 was up 39% to AED2.3bn ($626mn). While net income for the same period increased by 136% to AED101mn ($27.4mn).
And backlog was up 22% in 2013 from the previous year to AED24.1bn ($6,5bn) as the company continues to take advantage of the economic recovery.
Hasan Ismaik, managing director and CEO of Arabtec Holding, said: “Throughout the year, our company and subsidiaries have witnessed significant growth of backlog, revenues, margins and profits, with performance exceeding market and analyst expectations.”
Among the project awards in 2013 was the AED180mn ($49mn) contract at Dubai Silicon Oasis; the AED2.4bn ($653mn) Louvre Abu Dhabi deal; and Arabtec was selected to construct the final phase of the Tiara Hotel on Palm Jumeirah, valued at AED200mn ($54mn).
During the year, the company acquired Target Engineering and expanded its MEP division by taking up the remaining 45% minority stake in its subsidiary, EFECO, raising ownership to 100%.
And 2014 shows no signs of the company’s positive progression relenting, with the total value of announced projects for the year exceeding AED180bn ($49bn).
This includes an AED2.6bn ($707mn) contract to build a mixed-use development in Abu Dhabi’s Reem Island; an MoU signed valued at AED21.8bn ($5.9bn) to build 36 towers in Dubai and Abu Dhabi; an AED5.7bn ($1.5bn) contract to construct Jordan’s first themed entertainment resor, the Red Sea Astrarium, in Aqaba; and only last week, Arabtec was awarded a $147bn ($40bn) contract to build one million homes for the Egyptian Ministry of Defence.
Ismaik said: “We are optimistic about what 2014 will bring for our company and have an unwavering commitment to ensuring that Arabtec continues to play a leading role in the development of this region.”