Property News · May 4, 2017

Dubai's Arabtec reports first profit in three years after restructuring


Arabtec Holding on Thursday reported a tiny first quarter profit, its first since 2014, thanks to new projects and cost savings.Arabtec has struggled for more than two years in a depressed market for infrastructure projects in the Arabian Gulf, its problems exacerbated by internal strife among shareholders and several senior management changes.Arabtec made a net profit attributable to shareholders of Dh18 million in the three months ending March 31, compared to a loss of Dh46.4m in the prior-year period, a bourse statement said.
The profit came on higher revenues of Dh2.17 billion in the quarter versus Dh1.96bn a year ago. Cost savings included a restructuring and cutting jobs.”While this is another step towards the turnaround of the group, there is still a lot more work to be done,” Arabtec’s chief executive Hamish Tyrwhitt said in the statement.”The recapitalisation programme is laying the foundation to allow the group to build on our three-stage plan.”
Last month Arabtec got approval from shareholders for a Dh1.5bn rights issue. Shareholders also approved plans to use existing capital to wipe out accumulated losses.Arabtec shares were up 1.2 per cent at Dh0.83 this morning.* Reuters

Source : thenational.ae
Read more…Dubai’s Arabtec reports first profit in three years after restructuring

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