Dubai contractor Arabtec says refinancing process underway

Dubai contractor Arabtec has confirmed that it is in the process of refinancing its debt as part of its wider restructuring plan.

In a bourse statement, the company said it had appointed Moelis & Co to advice and assist with “debt financial modelling, structuring options and engagement with finance providers”.

At the start of 2017, Arabtec began its three-phase restructuring programme and in June last year, the company raised Dhs1.5bn through a rights issue.

The company has now “achieved six consecutive quarters of profitability supported by positive cash from operating activities and a reduction in net debt”, the statement said.

Dubai-listed Arabtec has been seeing a spike in new contracts and reported a 24 per cent rise in its net profit for the second quarter to reach Dhs49.4m.

The company also posted a 16 per cent increase in revenues to reach Dhs2.39bn in Q2.

Late last month Arabtec Holding’s wholly-owned subsidiary announced that it had been awarded two contracts worth a combined Dhs610m ($166m).

Arabtec Construction won a Dhs311m ($84.6m) contract from Expo Dubai 2020 to construct the public realm in concourses and arrivals plazas.

Construction is scheduled to begin this month and is slated for completion in the last quarter of 2019.

It also won a a Dhs299m ($81.4m) contract from Dubai developer Damac for the construction of 478 luxury villas in the developer’s Akoya Oxygen project.

Construction is expected to commence immediately, with plans to complete the villas within 16 months, a statement said.

The contract is Arabtec’s third project within the Akoya Oxygen development.

Read more: Dubai’s Arabtec unit wins Dhs610m worth of contracts from Expo 2020, Damac