Dubai: Arabtec posts AED75mn nine-month net profits
Dubai-based contractor, Arabtec Holding, announced a net profit of AED75mn for the nine months ending September 2017.
The contractor also reported a 3.2% year-on-year growth in revenue to reach AED6.3bn, according to the company statement on Dubai Financial Market.
Hamish Tyrwhitt, group CEO of Arabtec Holding, said: We have now delivered our third consecutive quarter of profitability, supported by new project wins across our operating companies. The group remains on track to achieving the first phase of its strategic roadmap to ‘stabilise’ the business in 2017, ensuring long-term, profitable and sustainable growth.
A key highlight in the quarter was the announcement by the Abu Dhabi Tourism & Culture Authority that the Louvre Abu Dhabi will open in November 2017. Arabtec played a key role in delivering this landmark project which highlights its contribution and competencies in delivering social and economic infrastructure in the UAE. Tyrwhitt said: We are proud to have taken part in the delivery of such an iconic project in the UAE.
Strengthening governance has been an ongoing focus for the group with the continued roll out of the 4-Gate Work Winning Process across all operating companies, which is demonstrating a more selective approach to Arabtecs new work pipeline through a clearer understanding of the addressable market including, core competencies, geographies, sectors and clients. Operationally, Arabtec continued to drive accountability into the business through rigorous project and business performance reporting and reviews, with a strong emphasis on cash, receivables and closing out legacy projects.
Backlog has remained strong at AED16.8bn, supported by new project awards across all operating companies, reflecting a more selective approach to tendering. Arabtec remains confident that the strength and quality of the new work pipeline in the region will continue to support the groups business objectives.
In Q3 2017, Arabtec continued to strengthen its management with the on-boarding of key appointments, underpinning the development of capable, empowered senior management across the Group. The group continues to assess further divestments and options to more seamlessly integrate its operating companies to improve efficiency and productivity. In the quarter, Arabtec divested its 14.6% stake in Jordan Wood Industries, a listed Jordanian company, which manufactures office and household furniture.
Tyrwhitt added: Overall I am pleased with the progress made so far this year to stabilise the business. I look forward to making further progress in Q4 on divestments and closer integration of our operating companies alongside strengthening our risk management processes. These final deliverables will put us on track to prepare the business for growth in 2018.