Arabtec Holding records $2.4bn in revenues for 2017
UAE-based contractor Arabtec Holding on Thursday announced its financial results for 2017, recording revenues of $2.4bn (AED9.1bn) for the full year
UAE-based contractor Arabtec Holding on Thursday announced its financial results for 2017, recording revenues of $2.4bn (AED9.1bn) for the full year.
The group also registered $762m (AED2.8bn) in revenues for the fourth quarter of 2017, with net profit to parent amounting to $34m (AED123m) for FY17 and $13m (AED48m) for Q4 2017, the company announced on the Dubai Financial Market.
The board of directors is recommending the distribution of a final cash dividend of 2.05 fils per share for FY17, for shareholder approval at the annual general assembly meeting. The last cash dividend paid out by Arabtec was in 2012.
With a reported backlog of $4.6bn (AED17.2bn), the company attributes the results to the support of new project awards across all operating businesses including the Forte Phase 2 contract from Emaar and the Villanova contract award from Dubai Properties.
The Opera District, awarded by Tav Tepe Akfen Construction, also contributed $599m (AED2.2bn) in the fourth quarter of 2017.
In 2017, Arabtec focused on recapitalising and stabilising the business following the significant challenges the company faced in 2016, underpinned by low oil prices and stagnant growth in the market.
Group chief executive officer Hamish Tyrwhitt, said: ”To support the delivery of our key objectives, we have strengthened our management team through a number of key senior appointments that have brought significant regional and international experience to the Group.
In June 2017, Arabtec raised $408m (AED1.5bn) through a rights issue and extinguished the company’s accumulated losses through a capital reduction which strengthened the group’s capital structure.
“This is positively impacting the business through a more performance-driven culture with clearer accountability driven by rigorous project and business reporting together with regular reviews and a strong emphasis on cash collection and closing out legacy projects.”