Arabtec Reports 114% H1 Profit Rise

Dubai construction firm Arabtec has reported a net profit of Dhs155 million for the first half of the year, up 114 per cent from a year earlier.

The contractor, which raised over $650 million in a rights issue in July, also revealed second quarter net profit of Dhs92.4 million, up from a loss of Dhs11.6 million on the same period in 2012.

“Our businesses have delivered a strong performance in the first half of 2013, particularly in the UAE and in Saudi Arabia, and our results are a clear indicator of the health of the industry and the potential for sustained growth in the medium term,” said Hasan Abdullah Ismaik, managing director and CEO of Arabtec Holding.

“All these positive developments are precursors to a strong performance in 2013 and beyond, which will start to show enhanced returns from 2014 onward since profits are tied to progress of work,” he added.

Arabtec, which is behind Abu Dhabi’s edition of the French Louvre museum, said its backlog has also increased by a net sum of Dhs7.3 billion to Dhs24.4 billion due to an increase in new project awards and expansion during the first half of the year.

“We expect that this substantial backlog will have significant positive impact on the Company’s financial position and profitability during the next five-year period as well as in the long term,” said Ismaik.

“Our focus now is on refining our project management organisation and execution platform in order to help deliver more value and stronger results for our clients and stakeholders.”

Arabtec shares fell 2.8 per cent in Dubai bourse on Thursday ahead of the results. They have risen 34.4 per cent year-to-date.