The Dubai contractor Arabtec posted another heavy set of losses for the third quarter of 2015 as it was forced to write off Dh379m of previously-declared profit on “a number of challenging projects”.
The company announced a net loss of Dh945 million in the three months to September 30, compared to a profit of Dh90m in the same period last year. Revenue also fell by 24 per cent year-on-year to Dh1.6bn.
This means that its cumulative losses in the first nine months of 2015 have reached Dh2.3bn, compared with a profit of Dh355m in the same period a year ago. Revenue is also 10 per cent lower at Dh5.2bn.
In a statement accompanying its results, the company said that its board “recognises that the regional construction market is currently very challenging, a dynamic that is expected to persist throughout the remainder of 2015 and possibly into early 2016.”
It added that it was continuing with a restructuring and cost-reduction programme that had led to annualised savings of Dh95m so far. It also said that it would take “further actions expected to further reduce the group’s cost base in 2016”.
Arabtec pointed to two recent project awards worth Dh1bn during the quarter to build villas for Emaar Properties at Arabian Ranches 2.
“The company maintains a healthly backlog of over Dh18.7bn and continues to improve its operational capabilities, demonstrating its commitment to deliver worldclass project executiuon expertise for its clients,” it said.
Arabtec shares were down 9.42 per cent on the Dubai Financial Market shortly after opening.
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