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Arabtec records eighth consecutive profitable quarter

14-04-2019

Arabtec, a leading engineering and construction group based in the UAE, has now achieved eight consecutive quarters of profitability supported by cash from operating activities and a reduction in net debt.

Through its operating companies and investments, the group has been delivering construction and infrastructure projects in the building, economic and social infrastructure and industrial sectors in the UAE, Saudi Arabia, Egypt, Bahrain and Kuwait.

It is currently working on some of the most prestigious projects in the Middle East, such as the UAE Pavilion, Zayed Museum and Public Realm Concourses and Arrival Plazas for Expo 2020 and the Midfield Terminal Building in Abu Dhabi.

Throughout 2018, Arabtec had maintained its focus on preparing the business for growth, continuing to strengthen its balance sheet and building on the solid foundation achieved in 2017 following the group's Recapitalisation Programme, said the Emirati construction group in its annual report released today (April 14).

On its solid performance, the report said Arabtec's revenue surged to Dh9.85 billion ($2.65 billion) in 2018, thus registering a 7.8% jump compared to Dh9.14 billion ($2.48 billion) the previous year.

The Dubai construction group's net profit hit Dh256 million, up 108.3% compared to Dh123 million in FY 2017. The margin improved from 1.3% to 2.6%, it added.

In line with the Group’s objective to diversify its revenue across all sectors, Arabtec is well-positioned to capitalise on the UAE Government’s strategy for economic diversification and the Abu Dhabi Economic Vision 2030, remarked Chairman Mohamed Thani Murshed Al Rumaithi.

In particular, prospects for the social and economic infrastructure sector are positive, with continued
infrastructure spending in transport and utilities leading up to Expo 2020 that will provide opportunities in 2019 and beyond.

Al Rumaithi said the Group continued to focus selectively on countries in the Middle East and North Africa that offered a solid, sustainable pipeline of construction and infrastructure opportunities.

The market outlook for the UAE and Saudi Arabia remains strong. Similarly, Egypt is showing potential for construction growth, underpinned by improving macro conditions and population growth, he explained.

"Innovation is equally important for our future success and will continue to be a strategic priority for the
group in 2019, as reflected in the Abu Dhabi Economic Vision 2030 and the UAE’s diversification into higher value-add industries," he added.

"For the Arabtec Group, 2018 was a successful year, underpinned by an increase in revenue of 7.85% year-on-year to Dh9.9 billion in FY 2018 compared to Dh9.1 billion for FY 2017," stated Group CEO Hamish G. Tyrwhitt.

Net profit attributable to parent for FY 2018 surged to Dh256 million from Dh123 million for FY 2017, up 108% year-on-year, he noted.

According to him, Arabtec Group has now achieved two full years of profitability supported by positive
cash from operating activities and a reduction in net debt.
 
"We continue to diversify our backlog into infrastructure and industrial sectors, which now comprise 50% of our current projects supported by a strong pipeline of opportunities in our addressable market. Amongst our current portfolio of projects in the UAE, we are proud to be delivering the UAE Pavilion, Zayed Museum and Public Realm Concourses and Arrival Plazas for Expo 2020," noted Tyrwhitt.

"We have successfully strengthened longstanding client relationships which supported winning further work with Dubai Municipality in the economic infrastructure sector and with Adnoc Group in the industrial sector," he added.

"Looking ahead, we will expand our regional footprint, taking advantage of the growing market opportunities in the UAE, Saudi, Egypt, Bahrain and Kuwait to further diversify our backlog," remarked Tyrwhitt.

"Our focus is aligned to the UAE’s national agenda, with productivity and efficiency being key drivers in positioning Arabtec as a competitive and sustainable business," observed Tyrwhitt.

Prospects for the social and economic infrastructure sector are positive, with continued infrastructure spending in transport and utilities leading up to Expo 2020.

"We continue to simplify the business through standardised processes, enabling tools and embracing the digital revolution as well as the removal of duplicated functions and activities through shared services and outsourcing," he added.-TradeArabia News Service




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