Falling costs offset a slight decline in revenues
Arabtec bounces back as earnings top expectations
Arabtec announced its second consecutive profitable quarter on Wednesday, as falling costs offset a slight decline in revenues.
The construction firm, which has undergone a recapitalisation programme following heavy losses in 2016, posted a net income of Dh40 million for the quarter, compared with a loss of Dh186m for the same period last year, and a Dh18m profit for the first three months of this year.
Net profit for the quarter came in well ahead of a forecast of Dh23m from NBAD Securities.
The firm’s revenue however slipped 6 per cent year-on-year to Dh2.06 billion during the second quarter, coming in below analyst expectations.
Arabtec completed its recapitalisation in June, raising Dh1.5bn via a rights issue to extinguish nearly Dh5bn worth of accumulated losses.
“The recapitalisation programme was the key deliverable for us in phase one of our strategic roadmap, which we successfully concluded in June, leaving us to focus on risk management and business transformation,” said Arabtec’s group chief executive Hamish Tyrwhitt.
“We will also remain on track to optimise the delivery of our Dh17.4bn backlog and continue to work on turning risks into opportunities through the resolution of legacy claims and collecting receivables.”