Arabtec bidding on $4bn UAE projects as Q1 net profit grows 261%
Group CEO Hamish Tyrwhitt says Q1 results reflect "transformation initiatives", with the firm set to emphasise legacy project close-outs in 2018
The UAE's contracting giant, Arabtec Group, announced a net profit of 261% for Q1 2018.
Net profit amounted to $17.3m (AED63.6m) in the first quarter of this year, which is more than thrice its Q1 2017 net profit, worth $4.8m (AED17.6m).
Revenue during the quarter amounted to $653.4m (AED2.4bn), with its backlog valued at $4.4bn (AED16.2bn).
In a statement, the contractor revealed that it also has a pipeline worth $4.35bn (AED16bn) of "tenders submitted, or under preparation" in its primary market, the UAE.
Arabtec Group's Q1 2018 revenue is 10.7% higher than Q1 2017 values, worth $599m (AED2.2bn).
The firm's Q1 2018 wins included 916 Villas in Damac Properties' Akoya Oxygen development, through a contract worth $115.4m (AED424m), and Dubai Municipality's $118m (AED433m) contract for the DS188 infrastructure project.
Commenting on the results, group chief executive officer of Arabtec Group, Hamish Tyrwhitt, said: "I am pleased to report a positive start to the financial year.
"We have seen a material increase in our net profit since last year, with solid growth in revenue.
"[Our] Q1 results reflect the positive impact of various transformation initiatives. In 2018, strengthening governance still remains our key priority through rigorous project and business performance reporting, with a strong emphasis on cash, collection of receivables, and closing-out legacy projects."