Dubai-listed construction firm Arabtec reports narrowing Q3 net loss
Contractor Arabtec reported its eighth straight quarterly loss in the three months to September, but showed signs that its recent malaise may be close to ending as revenues increased and costs from its continuing operations were significantly reduced.
The company said that net loss attributable to its parent stood at Dh225 million for the quarter, which is a 76 per cent drop on the Dh944.8m loss in the same period last year.
General and administrative costs from its continuing operations were 64.5 per cent lower at Dh107m during the quarter, but overall costs of continuing operations of Dh2.15 billion meant that the company still declared a loss despite a 25 per cent increase in revenue — to Dh2bn, up by 25 per cent year-on-year from Dh1.6bn last year.
Arabtec said that the improved revenue was largely a result of contracts won in the latter part of last year and early this year.
During the quarter, it also completed the Saraya Towers project in Abu Dhabi and entered the final stages of construction at the delayed Louvre Abu Dhabi museum on Saadiyat Island.
The loss for the nine-month period of Dh458.3m was 76 per cent lower than the Dh1.94bn lost in the same period last year. Revenue was also 18 per cent higher at Dh6.09bn.
In a statement accompanying its results, the company’s acting chief executive Saeed Mohamed Al Mehairbi, said: “Besides restructuring processes and cost reduction during 2016, the group has focused on improving and developing the company’s performance by establishing standards in order to improve operations.”
He added that it was “proud of the level of completion and work progress at the Louvre Museum Project as we constantly strive to complete this landmark project and ensuring that it will be delivered in accordance with the highest quality standards”.