{"id":13138,"date":"2016-05-15T15:20:30","date_gmt":"2016-05-15T08:20:30","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-looks-to-shore-up-balance-sheet-as-dubai-contractors-losses-narrow\/"},"modified":"2016-05-15T22:17:57","modified_gmt":"2016-05-15T15:17:57","slug":"arabtec-looks-to-shore-up-balance-sheet-as-dubai-contractors-losses-narrow","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-looks-to-shore-up-balance-sheet-as-dubai-contractors-losses-narrow\/","title":{"rendered":"Arabtec looks to shore up balance sheet as Dubai contractor's losses narrow"},"content":{"rendered":"


\nThe contractor Arabtec has said that it is “looking at ways to enhance its capital structure” after posting its sixth successive quarterly loss on Sunday.The company said it “is currently engaged in discussions with Aabar, its largest shareholder, in respect of potential options for cooperation and continues to remain in dialogue with its major lending banks” about its capital position.It reported a Dh46.4 million loss for the first three months of this year – an 83 per cent reduction on the Dh279.8m loss the company declared in the same period a year ago. Revenue increased by 8 per cent year-on-year to Dh1.94 billion. Last month, Arabtec reportedly appointed the US-based restructuring adviser Alix Partners. The group cut its costs by 2 per cent to Dh1.89bn, meaning it made a gross profit of Dh45m, instead of a gross loss of Dh141m in the same period a year ago.Its accumulated losses stand at Dh2.27bn, according to the financial statement released by Arabtec on Sunday, so it is planning to tap into reserves to reduce that figure and strengthen its balance sheet. It will seek shareholder approval for this at its general meeting on June 1.Notes to its accounts also reveal that a new dispute has emerged with a minority shareholder of its Qatar subsidiary. The shareholder has refused to sign off last year’s accounts, stating that it accepts “no responsibility for the financial position and performance of the subsidiary” during the year. Arabtec’s statement said it had obtained legal advice and “believes that the non-controlling shareholder is responsible for their share” of the operations and liabilities incurred. Arabtec also recommenced proceedings against Meydan for Dh1.4bn it claims it is owed for work carried out on the construction of Meydan racecourse.Sanyalak Manibhandu, the head of research at NBAD Securities, said he believed Arabtec “still has some way to go” in terms of moving back into profit, adding that although it has reduced losses, it did so mainly by cutting overheads and that gross margins remained weak. “I’m still concerned that it’s not an easy investment case,” he said. “It’s still a difficult situation that they are in, even though the headline loss has reduced. The region in which it operates still has a problem with low crude prices and financial system liquidity. We know that when times get tough, people tend to delay payments.” Arabtec said operational highlights during the quarter included the handover of 2,000 villas at the Mira and Palma projects in Dubai. It is in the final stages of handing over Saraya Tower in Abu Dhabi and is close to completing the Louvre Museum on Saadiyat Island. It also pointed to major contract wins, including a deal to build a terminal at Bahrain International Airport and the Dh6bn West Yas villas project for Aldar Properties.Despite this, it said market conditions remained “challenging … The company is seeking to reduce its cost base even further in 2016 in addition to the cost savings plans previously announced,” it said. Arabtec’s shares closed almost 5 per cent lower, falling by 7 fils to Dh1.45 per share. Aabar Investments, which is owned by the Abu Dhabi government’s International Petroleum Investment Company, is the biggest single shareholder in Arabtec with a stake of 36.11 per cent.mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Arabtec looks to shore up balance sheet as Dubai contractor’s losses narrow<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The contractor Arabtec has said that it is “looking at ways to enhance its capital...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-13138","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-3pU","jetpack-related-posts":[{"id":53712,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubais-arabtec-reports-first-profit-since-2014-after-restructuring\/","url_meta":{"origin":13138,"position":0},"title":"Dubai's Arabtec reports first profit since 2014 after restructuring","date":"May 4, 2017","format":false,"excerpt":"\r Arabtec posted its first quarterly since 2014 as the contractor's new management press ahead with a high stakes turnaround plan.The Burj Khalifa builder said net profit for the first three months of 2017 stood at Dh18 million - the company's first quarterly profit since the third quarter of 2014.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":22849,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-still-in-the-red-but-losses-reduced-by-74-per-cent\/","url_meta":{"origin":13138,"position":1},"title":"Arabtec still in the red but losses reduced by 74 per cent","date":"August 14, 2016","format":false,"excerpt":"\r The Dubai contractor Arabtec posted its seventh successive quarterly loss for the three months to June 30, although an increase in revenue has meant the scale of its losses narrowed.The company posted a net loss attributable to its parent company of Dh186.4 million \u2014 a 74 per cent reduction\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":34242,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-listed-construction-firm-arabtec-reports-narrowing-q3-net-loss\/","url_meta":{"origin":13138,"position":2},"title":"Dubai-listed construction firm Arabtec reports narrowing Q3 net loss","date":"November 14, 2016","format":false,"excerpt":"\r Dubai construction firm Arabtec Holding reported a narrower third-quarter net loss today as it cut costs and increased revenue.The company made a loss of Dh225.5 million attributable to the owners of the parent in the three months to September 30, compared with a Dh944.8m loss in the same period\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":47203,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-holding-to-seek-approval-for-annual-general-meeting-over-rights-issue\/","url_meta":{"origin":13138,"position":3},"title":"Arabtec Holding to seek approval for annual general meeting over rights issue","date":"March 8, 2017","format":false,"excerpt":"\r Arabtec Holding's board will meet on Sunday to discuss when it will next update shareholders on its turnaround programme, including a Dh1.5 billion rights issue to wipe out accumulated losses, the Dubai-listed contractor said yesterday. This will be its third board meeting of the year. The company is proposing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6552,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-shares-plunge-20-per-cent-as-rally-comes-to-dramatic-end\/","url_meta":{"origin":13138,"position":4},"title":"Arabtec shares plunge 20 per cent as rally comes to dramatic end","date":"March 2, 2016","format":false,"excerpt":"\r \r Arabtec plummeted 20 per cent in the final 90 minutes of trading, bringing the stock's dramatic three-day rally to an abrupt end.EFG Hermes downgraded Arabtec to 'sell' from 'hold', arguing that the construction firm's fundamentals did not justify recent rises in their share prices.The bank argued that the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13094,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-losses-continue-but-dubai-contractors-financial-performance-improving\/","url_meta":{"origin":13138,"position":5},"title":"Arabtec losses continue, but Dubai contractor's financial performance improving","date":"May 15, 2016","format":false,"excerpt":"\r Contractor Arabtec has reported its sixth straight quarterly loss, despite an upturn in sales. The company reported a Dh48m loss for the first three months of 2016, which was an 85 per cent reduction on the Dh321.4m loss the company declared in the same period a year ago.Revenue increased\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/13138"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=13138"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/13138\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=13138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=13138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=13138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}