Hill International declares $6.3m loss for Q3 2016
Total revenue for the quarter was $168m, 6.1% lower than the same period last year for regional operations
US-based Hill International has declared a net loss of $6.9m in the third quarter of 2016 for its Middle East operations.
Consulting fee revenues for the quarter dropped by 19.3%, or $11.4m for regional operations, as the company cited lower revenues and payment delays, The National reported.
Total revenue for the quarter was $168m, 6.1% lower than the same period last year.
Revenue for the first nine months of 2016 is 2.1% lower at $519.8m, swinging to a net loss of $3.9m, compared to a profit of $8m for the same period in 2015.
David Richter, the son of the founder and the chief executive of Hill International said: "We saw challenges in the third quarter in our Middle East project management operation, with respect to both sales of new work and cash flow on existing work, as low oil prices have continued to have a major impact on construction activity there.”
Richter noted however that the company still expects strong performance continuing for both the US project management operation and the construction claims operation globally.
“We expect to return to revenue growth companywide in 2017 as oil prices recover,” he added.
Expecting consulting fees to be between $600m and $610m, or about 3 to 5% lower than last year, Hill International has revised its earnings and revenues targets for the full year, based on its performance during the period.