Arabtec Holding, the Dubai-listed contractor, has reported that in H1 2019, total revenue declined by 12.4% and net profit to parent declined by 48.8% compared to the same period in 2018.
In a regulatory filing to the Dubai Financial Market, the company said that net profit to parent was $15.7 million on revenue of $1.14 billion for the first half of the year ending June 30. This reduction is mainly attributable to a decrease in awards in the construction sector in H1, in addition to a number of legacy projects completing through 2019, it said.
Despite the decline in new awards during the first half of 2019, the group’s backlog remained strong at $3.81 billion.
“We remain committed to our strategy of diversifying our backlog across the infrastructure and industrial sectors. During the first half of the year, we have secured new contracts in the industrial sector which we expect to continue given the strength of the pipeline,” Arabtec’s group chief executive Peter Pollard said.
“With a particular focus on strengthening our balance sheet, we continue to reduce our debt by $101.5 million during H1 2019.”
In line with the Group’s strategic priority to strengthen the balance sheet, total debt was reduced by $101.5 million in H1 2019 and net debt to equity ratios improved to 0.56x compared to 1.24x in H1 2018, the statement added.
“Our strong pipeline of tender opportunities coupled with Arabtec’s longstanding market reputation provides us with a strong base to grow the company and deliver on our strategic road map. We also remain focused on diversifying our backlog geographically and we are selectively evaluating opportunities in other GCC countries and MENA region,” Pollard concluded.
Key figures:
- Total debt reduction of $101.5 million in H1 2019
- Key contract wins included:
▪ Bu Hasa Project ($85.7 million)
▪ Navin Minar ($59.6 million)
▪ Villanova ($56.3 million)
▪ Wilton Park ($52.27 million)
▪ EXPO 2020 ($46.01 million)
- Backlog of $3.81 billion as at 30th June 2019
- Revenue of $1.14 billion in H1 2019
- Net profit attributable to Parent was $15.7 million in H1 2019
