Dubai: Arabtec reports AED42mn net profit in H1 2017
Dubai-based contractor, Arabtec, reported a net profit of AED42mn in the first six months of 2017, as compared to a net loss of AED243mn in the same period in 2016.
Revenue for the period ending June 30, 2017, was reported at AED4.2bn, a 2% increase from AED4.1bn in the same period last year. Net profit attributable to the parent company was AED57mn compared to a net loss of AED233mn in H1 2016.
Group chief executive officer, Hamish Tyrwhitt, said: We continue to align our business with our strategic roadmap which has been reflected in the performance of the group. The recapitalisation programme was the key deliverable for us in phase 1 of our strategic roadmap, which we successfully concluded in June, leaving us to focus on risk management and business transformation. We will also remain on track to optimise the delivery of our AED17.4bn backlog and continue to work on turning risks into opportunities through the resolution of legacy claims and collecting receivables.
Having begun the implementation of the 4-Gate Work Winning Process, we are already seeing an improvement in our work winning rate adding to our backlog of quality projects and are optimistic about the pipeline of future tenders.
We are now concentrating on aligning the synergies of our operating entities to become more productive and cost effective and have begun positioning the business to deliver Phase Two of our strategic roadmap. We continue to look to improvements in the future that will contribute to the successful and sustainable future for all our stakeholders.
The key deliverable in H1 2017 was the completion of the recapitalisation programme in June which has stabilised the business enabling the group to look to the future. Arabtec has made good progress implementing robust risk management, refocusing on core competencies and key geographies, creating clear accountability, managing and tracking performance, and streamlining business processes which will continue to improve productivity.