Arabtec Holding, the UAE-based construction company, has announced that it has registered a 97% jump in net profit for the first half of year, rising to $31 million from 2017’s $15.6 million.
In a statement announcing the results for the six-month period ending June 30, Arabtec Holding said that revenue increased by 13.3% to $1.30 billion from last year’s figure of $1.14 billion. The group’s backlog stood at $4.38 billion, supported by $9.42 billion worth of tenders submitted or under preparation, it added.
The statement said that this was the group’s sixth consecutive quarter of profitability. During the second quarter, the group continued to focus selectively on countries that offer a strong, sustainable pipeline of construction and infrastructure opportunities. These countries include the UAE, Saudi Arabia, Bahrain and Egypt, the statement added.
Arabtec said that it was actively pursuing several infrastructure project opportunities through its operating companies, as evidenced by the recent award of a strategic sewerage and drainage infrastructure project in Jebel Ali, from Dubai Municipality.
In the second quarter, the company said that trade and other receivables were reduced by $60.7 million, with a 17-day improvement on debtor days. This produced positive net cash from operating activities of $56 million.
“I am delighted to report a strong first-half performance which has seen Arabtec deliver six consecutive quarters of profitability. It is also pleasing that we are now seeing a reduction in trade receivables and debtor days reflecting the group’s ongoing efforts to improve the resolution and collection of receivables,” Hamish Tyrwhitt, group CEO, said in the statement.
“We continue to make good progress on simplifying our business model through better tools and processes and outsourcing non-core business activities, as well as applying innovative approaches to enhance our work and delivery capabilities.
“We are also taking positive steps towards ensuring better economic, social and environmental sustainability across our operations, and therefore I am pleased to announce the release of our first Sustainability Report marked by the Global Reporting Initiative (GRI),” he concluded.