Arabtec profits more than triple on higher revenues

dubai — Arabtec, a Dubai-based contractor, on Wednesday said its net profit more than tripled during the third-quarter while 9-month profits more than doubled on the back of higher revenues and better profit margins.

The company’s third-quarter profits attributable to the owners jumped 272 per cent from Dh18 million to Dh67 million while 9-month profits jumped from Dh75 million to Dh181 million, an increase of 140 per cent.

Its third-quarter revenues jumped 11.5 per cent to Dh2.34 billion while 9-month revenues grew 12.7 per cent to Dh7.15 billion. Similarly, its margin doubled from 2 per cent to 4 per cent in the third quarter.

It said debtor days reduced in Q3 2018 by a further 2 days to 166 days contributing to a positive net cash from operating activities of Dh193 million.

“Debtors days are continuing to decrease through our efforts to close out completed projects and shorten the payment cycle for current projects. This has contributed to a further improvement in cash

Debtors days are continuing to decrease through our efforts to close out completed projects and shorten the payment cycle for current projects

Hamish Tyrwhitt,

Group CEO, Arabtec

from operations and Dh146 million reduction in net debt. Strengthening the balance sheet remains a strategic priority going into 2019,” said Hamish Tyrwhitt, Group CEO, Arabtec.

“Net debt to equity ratio improved to 1.07x compared to 1.2x at 30 June 2018.”

The company recently appointed Moelis & Co. to advise on debt financial modelling, structuring options and engagement with finance providers. The Group’s backlog increased to Dh16.4 billion, supported by a strong Dh45.8 billion pipeline of identified opportunities within Arabtec’s addressable market.

In Q3 alone, it won nearly Dh4 billion worth of contracts including Dh3.2 billion Adnoc LNG gas development expansion project.