- Q2 net profit fell 47% year-on-year to AED 26 million
- Strong backlog of projects at AED 14 billion despite decline in new awards
Contracting-major Arabtec Holding released its results for the quarter ending June, displaying a 47% decline in net profit to AED 26 million. Costs during the quarter were AED 2 billion whilst expenses increased to AED 92 million.
For the first half of the year, the company recorded a net profit of AED 58 million, down 49% from the same period a year ago, on revenue of AED 4.2 billion.
Arabtec attributed the fall to a decline in the awards of new contracts in the construction sector in the first half of the year coupled with the completion of legacy projects in 2019. However, it said that it had a strong backlog of projects at AED 14 billion.
The company also said it had lowered total debt by AED 373 million in the first half of the year.
Arabtec’s group chief executive Peter Pollard said, “We remain committed to our strategy of diversifying our backlog across the infrastructure and industrial sectors. During the first half of the year, we have secured new contracts in the industrial sector which we expect to continue given the strength of the pipeline.”
He added, “Our strong pipeline of tender opportunities coupled with Arabtec’s longstanding market reputation provides us with a strong base to grow the company and deliver on our strategic road map. We also remain focused on diversifying our backlog geographically and we are selectively evaluating opportunities in other GCC countries and the MENA region.”
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