{"id":46071,"date":"2017-03-01T23:32:16","date_gmt":"2017-03-01T16:32:16","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/uk-builder-carillion-muted-on-prospects-for-gulf-construction\/"},"modified":"2017-03-01T23:59:15","modified_gmt":"2017-03-01T16:59:15","slug":"uk-builder-carillion-muted-on-prospects-for-gulf-construction","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uk-builder-carillion-muted-on-prospects-for-gulf-construction\/","title":{"rendered":"UK builder Carillion muted on prospects for Gulf construction"},"content":{"rendered":"


\nThe UK-based construction company Carillion has said that it expects the pace of new contract awards in the Middle East to remain slow this year amid a low oil price environment.The company, which operates in the UAE and Oman through a pair of long-standing joint ventures with local partners, reported an 11 per cent increase in revenue to \u00c2\u00a3668.3 million (Dh3.03 billion) in its Middle East construction business last year, but added that this included a \u00c2\u00a377.8m positive swing in currency movements. The division’s underlying operating profit declined by 36 per cent to \u00c2\u00a316.1m, but the firm said this was owing to a one-off gain in 2015 from reorganising staff accommodation in Oman. Without this, it said operating profit margins would have increased to 2.4 per cent, up from 1.9 per cent last year. Speaking on a conference call, chief executive Richard Howson said the pace of contract awards in the Gulf “remained very slow throughout the year due to the prolonged low oil price”.He said that it had been able to pick up two major UAE contracts where it had been able to bring in funding from UK Export Finance, a government-backed export credit agency – the new \u00c2\u00a360m Bee’ah headquarters in Sharjah and a \u00c2\u00a3160m deal for two office buildings at Dubai World Trade Centre, which is its third win at the same development.Mr Howson said that Carillion is currently being ” very, very selective in the Middle East”, focusing mainly on projects where it can bring in export fin\u00adance as it offers more certainty over when it will be paid.”In the last few years we have deliberately not chosen to bid for what I call traditional construction work in the Middle East,” he said.This targeted approach and the slower market meant that the value of its current and probable orders dropped to \u00c2\u00a3500m by the end of 2016, compared to \u00c2\u00a3800m a year earlier. However, its pipeline of potential contract opportunities remains high at \u00c2\u00a315bn compared with \u00c2\u00a316bn in 2015 and makes up for 36 per cent of total work being targeted by the firm.Interserve, another UK contractor active in the region, also reported mixed fortunes. Its international construction division, which trades solely from the Middle East in joint ventures with Khansaheb Group in the UAE and as Gulf Contracting in Qatar, reported a 6 per cent increase in revenue to \u00c2\u00a3296.9m and a 30 per cent growth in operating profit to \u00c2\u00a316.9m. It won new UAE contracts from Majid Al Futtaim Group for the City Centre Ajman Mall and for a \u00c2\u00a340m tower in Dubai International Financial Centre. In Qatar, it picked up a deal to build a five-star hotel for InterContinental Hotels, but added that this market “continues to show few immediate signs of the long-awaited resurgence”.Moreover, its international support services arm, whose main area of business is serving the region’s oil and gas market, grew turnover by 19 per cent to \u00c2\u00a3267.9m, but experienced “a significant reduction in activity and profit” during the second half of the year, which it blamed on the lower oil prices and client spending curbs. Chairman Glyn Barker said this slowdown was likely to extend into this year. The company has already begun to reduce the size and cost base of the division’s operations, as well as div\u00adersifying into related markets like power and water in Oman and Qatar.”We have been and will continue to take mitigating action on our cost base where possible,” said Mr Barker.mfahy@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…UK builder Carillion muted on prospects for Gulf construction<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The UK-based construction company Carillion has said that it expects the pace of new contract...<\/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-46071","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-bZ5","jetpack-related-posts":[{"id":46047,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uk-builders-muted-on-prospects-for-gulf-construction\/","url_meta":{"origin":46071,"position":0},"title":"UK builders muted on prospects for Gulf construction","date":"March 1, 2017","format":false,"excerpt":"\r The UK construction company Carillion has said that it expects the pace of new contract awards in the Middle East to remain slow this year amid a low oil price environment.The company, which operates in the UAE and Oman through a pair of long-standing joint ventures with local partners,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18882,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/carillion-wins-five-year-a240-million-extension-to-petroleum-development-oman-maintenance-contract\/","url_meta":{"origin":46071,"position":1},"title":"Carillion wins five-year, \u00c2\u00a3240 million extension to Petroleum Development Oman maintenance contract","date":"July 6, 2016","format":false,"excerpt":"\r The UK contractor Carillion has announced that it has won a five-year, \u00c2\u00a3240 million (Dh1.1 billion) extension to a facilities management contract being carried out for Petroleum Development Oman (PDO).The company, which operates as Carillion Alawi in Oman, has been working for PDO for three years, providing facilities management\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6692,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/carillion-to-partner-with-omans-sovereign-wealth-fund-to-build-hospitals\/","url_meta":{"origin":46071,"position":2},"title":"Carillion to partner with Oman's sovereign wealth fund to build hospitals","date":"March 3, 2016","format":false,"excerpt":"\r \r Contractor Carillion has signed an agreement with Oman's sovereign wealth fund that could see the pair developing a number of hospital projects together across the Sultanate.In a note accompanying its full-year accounts for 2015, Carillion said there was \"growing interest in private finance\" across the Arabian Gulf.\"We have\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":22193,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/middle-east-project-growth-coming-back-to-the-region-says-hill-international\/","url_meta":{"origin":46071,"position":3},"title":"Middle East project growth coming back to the region, says Hill International","date":"August 7, 2016","format":false,"excerpt":"\r The US project management company Hill International expects overall growth in the Middle East to return in terms of new contract awards next year, although it is planning to cut overheads in Oman in anticipation of a slower market in the sultanate.Hill's chief executive David Richter anticipated that \"the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":48344,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/salini-impregilo-lands-435m-contract-to-build-dubais-meydan-one-mall\/","url_meta":{"origin":46071,"position":4},"title":"Salini Impregilo lands $435m contract to build Dubai's Meydan One Mall","date":"March 17, 2017","format":false,"excerpt":"\r The Italian contractor Salini Impregilo said on Thursday it won the US$435 million contract to build the new Meydan One Mall in Dubai, for which a groundbreaking ceremony was held on Wednesday evening. The contractor said that it would be responsible not only for building the mall but also\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":55531,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-wins-dh1-46bn-contract-to-build-2020-tower-in-dubai\/","url_meta":{"origin":46071,"position":5},"title":"Arabtec wins Dh1.46bn contract to build 2020 Tower in Dubai","date":"May 21, 2017","format":false,"excerpt":"\r Arabtec said it won a Dh1.46 billion contract to build the 2020 Tower beside Dubai's main highway.The mixed-use tower is being developed by Wasl Asset Management (Wasl) on a site at Sheikh Zayed Road on the opposite side to Dubai Mall.The 63-storey, 300m-high building, previously known as Wasl Tower,\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\/46071"}],"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=46071"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/46071\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=46071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=46071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=46071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}