Contracting giants exploring the possibility of entering into agreement to collaborate in the construction sector
In a filing to the Dubai bourse, Arabtec Holding, the UAE-based construction giant, has said that it is considering entering a cooperation agreement with the Abu Dhabi-based construction group, Trojan Holding.
In the statement, Arabtec said that both firms are “willing to explore the possibility of entering into a cooperation agreement with a view to collaborate in the construction sector. We will naturally ensure that you are kept informed of any development in this regard, particularly when an agreement is reached or otherwise.”
The update comes in the wake of Arabtec appointing the former general manager of Dutco Balfour Beatty as chief operating officer. On September 4, 2019, Wail Farsakh was confirmed as the group’s new COO and tasked with playing a key role in building the contractor’s presence in social and economic infrastructure.
In August, the building giant 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. Despite the decline in new awards during the first half of 2019, the group’s backlog remained strong at $3.81 billion.
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.
In an interview with Big Project ME earlier this year, Eng Hamad Al Ameri, managing director of Trojan Holding, said that the construction group was looking to expand into new markets and territories, having successfully established itself in the UAE construction sector.
You can read the full interview here.