Arabtec reports profit drop due to one-off costs
Contractor says its "limited restructuring process" has been successfully completed
Contractor Arabtec reported a 32.6% drop in profits for the third quarter of 2014 to $18.5mn (AED68mn), which it said was due to "non-recurring general and administrative expenses".
The company, which has recently undergone an internal restructuring following the departure of former CEO Hasan Ismaik and many of his senior management, said that revenues had increased by 24% to $653mn (AED2.4bn) in the same period.
Its current backlog sits at $6.5bn (AED23.8bn).
In a statement accompanying the results, the company said that its board was briefed on projects and the recent restructuring, which it said had achieved an improvement in its methods and a better use of resources.
"The board emphasized the importance of actions taken locally and how they reflected positively on different levels; especially for saving expenditures after the successful limited restructuring process which has achieved its objectives," it added.
The restructuring exercise rolled back on some of the ambitions that Ismaik had embarked upon to build a bigger group that would be more involved in fields such as oil & gas in order to concentrate more specifically on opportunities in general contracting.
The board also welcomed the fact that its biggest shareholder - Abu Dhabi government-owned Aabar Investments - had recently grown its stake in the business from 18.94% to 34.93% after buying shares from Ismaik.
It said the increase "reflects the strategic relationship between the two companies".
It also reiterated that work on its $40bn housing project in Egypt will begin by the end of this year.