Arabtec says the Group recorded a net profit $49 million against revenue of $1.96 billion for the 9 months ending 30 September 2018.
In its results statement, Arabtec revealed that the Group’s backlog increased to $4.47 billion, “reflecting the Group’s increasing focus on social and economic infrastructure and industrial sectors. Backlog is supported by a strong $12.47 billion pipeline of identified opportunities within Arabtec’s addressable market.”
Arabtec added that it is continuing to simplify, “its business through standardised processes and enabling tools and the removal of duplicated functions and activities through shared services and outsourcing.”
Arabtec continues to review non-core assets which are not considered key to the business for divestment or development, it added.
The UAE-based contractor also said in its statement that in Q3 2018 its debtor days reduced by a further 2 days to 166 days “contributing to a positive net cash from operating activities” of $52.5 million.
Meanwhile, net debt to equity ratio improved to 1.07x compared to 1.2x at 30 June 2018.
Moelis & Co was additionally appointed recently to advise and assist Arabtec with debt financial modelling, structuring options and engagement with finance providers.
“I am pleased to report another positive quarter of results. Debtors days are continuing to decrease through our efforts to close out completed projects and shorten the payment cycle for current projects,” said Arabtec’s Group CEO Hamish Tyrwhitt. “This has contributed to a further improvement in cash from operations and an $39.75 million reduction in net debt. Strengthening the balance sheet remains a strategic priority going into 2019.”
He added: “The $870,000 million award by ADNOC LNG to Target Engineering and Tecnicas Reunidas and further infrastructure work awarded to Arabtec Engineering Services highlights our progress in building a stronger presence in the infrastructure and industrial sectors. Both of these sectors offer a strong pipeline of addressable opportunities, which we are well-positioned to pursue.”