Contract wins help Dubai's Arabtec post 140% profit hike
Revenue worth $1.9bn was generated in the nine months to 30 September 2018
Net profit for UAE construction heavyweight Arabtec Holding has grown by 140%, according to a company filing on Dubai Financial Market.
Arabtec Holding's net profit attributable to parent for the nine months to 30 September 2018 climbed to $42.9m (AED181m), with the business generating revenue of $1.9bn (AED7.2bn) during the same period.
The company's financial results were bolstered by contract in wins in Q3 2018, including an $871m (AED3.2bn) award from Abu Dhabi National Oil Company LNG, and a $42m (AED155m) Dubai Municipality contract for sewerage and drainage work.
Its backlog is currently valued at $4.4bn (AED16.4bn) and the engineering and construction giant said it boasts a pipeline of “identifiable opportunities” worth $12.4bn (AED45.8bn).
The company said it will continue to “review non-core assets” into 2019.
Commenting on the latest round of figures, Arabtec Holding's group chief executive officer, Hamish Tyrwhitt, said he was satisfied with the contractor's operational performance during the third quarter.
“Debtors days are continuing to decrease through our efforts to close out completed projects and shorten the payment cycle for current projects,” he said, adding this helped to reduce net debt by $39.4m (AED146m).