Arabtec posts a 121% surge in net profits
Company signed $7.1bn worth of contracts in the first quarter of 2014
Arabtec reported a net profit of $37.6mn (AED138mn) for the first quarter of 2014, marking an increase of 121% on Q1 2013 $17mn (AED62.5mn).
The company attributed the results to strong delivery, improved commercial review of contracts and growth of UAE and GCC business.
Arabtec also announced that it had won $7.1bn (AED26.2bn) worth of contracts in the first quarter of 2014, a growth of 28% over the $5.55bn (AED20.4bn) registered in Q1 2013.
"We continued to achieve high growth in profits and revenues, driven by our growing business in the UAE and the region, and more focus on delivery and profitability of projects," said Hasan Ismaik, managing director and CEO of Arabtec Holding.
"We are planning a series of acquisitions and mergers in the forthcoming period. We are targeting global players in such high margin sectors as oil and gas, power plants, infrastructure, and facility management of huge industrial plants," Ismaik announced.
"In four years' time, Arabtec will grow from a medium-scale regional player into a global leader in specialised segments of the construction industry. The planned acquisitions and mergers will lead to significant synergies, in terms of accumulated experience, enhanced cash flow and stronger brand," he added.
Arabtec’s most notable achievements include the construction of 36 towers in Abu Dhabi for Aabar, the deal for the Red Sea Astrarium in Aqaba, and the contract to build 1,500 Emaar townhouses in Dubai. The pipeline also includes the one million housing units in Egypt.
Arabtec has also completed acquisition of Target Engineering, furthering its ability to bid for small to medium-scale EPC contracts in MENA's oil and gas, power and related infrastructure.
During the quarter, Arabtec launched five new subsidiaries, including Arabtec Properties that is taking on projects at a total value of $3.8bn (AED14mn).
The company also announced plans in Iraq and Jordan.