Result marks construction firm’s second straight profitable quarter
Arabtec has reported a second-quarter net profit attributable to its owners of AED39.8 million ($10.8m), compared to significant a loss a year ago.
The Q2 turnaround has been attributed to the Dubai-listed contractor’s investment in interior designer Depa, as well as internal cost-cutting. The period marked Arabtec’s second straight profitable quarter.
Depa, in which Arabtec owns a 24.3% stake, made some $6.2m. For the same period in 2016, the Dubai-based construction company recorded a second-quarter loss of approximately $9.4m.
The three months to the end of June marks Arabtec’s second straight profitable quarter. In 2015 and 2016, the company experienced consistent loses owing to a sluggish construction market, driven by government austerity measures due to low oil prices and internal management changes.
Earlier in the year, Arabtec announced its intent to raise approximately $408m by issuing 1.5 billion new shares. The company’s cashflow statement shows that proceeds from the rights issue were $299m after deducting cash used to settle a loan from its largest shareholder, Aabar Investments.
In recent times the company has been working towards turning around its fortunes. Last November, the construction company appointed Hamish Tyrwhitt as its chief executive, and since then, general and administrative expenses have more than halved as of the second quarter of 2017.