Arabtec earns Dh138 million net profit in Q1 2014

Arabtec Holding PJSC on Wednesday announced its financial results for the first quarter of 2014, reporting a net profit attributable to parent of Dh138 million, marking an increase of 121 per cent on Q1 2013 net profit of Dh62.5 million.

The company’s board of directors approved the Q1 results at its meeting on Wednesday.

The results showed a 39 per cent growth in revenues in Q1 2014 to Dh2.152 billion, compared to Dh1.545 billion in Q1 2013, while net income (before minority interest) grew 52 per cent to Dh152 million, from Dh100 million.

The first quarter also saw the gross profit margin growing from 12 per cent to 15 per cent, while the net profit margin increased to 7 per cent, from 6 per cent in Q1 last year.

The board also reviewed the results of the Annual Ordinary General Assembly Meeting held on April 30, which unanimously approved the distribution of 40 per cent dividends as bonus shares, which effectively increased the capital to Dh4.439 billion, from Dh3.139 billion.

Hasan Ismaik, Managing Director and CEO of Arabtec Holding, said: "We are planning a series of acquisitions and mergers in the forthcoming period. We are targeting players in such high margin sectors as oil and gas, power plants, infrastructure, and facility management of industrial plants."

Arabtec won Dh26.2 billion worth of contracts in the first quarter of 2014, a growth of 28 per cent over the Dh 20.4 billion registered in Q1 2013.

The implied total direct and indirect value of projects by the end of Q1 jumped to Dh215 billion. This includes Dh26.2 billion worth of projects in progress.

The company has signed a Memorandum of Understanding with Aabar for construction of 36 towers in Abu Dhabi, for Dh21.8 billion. It has also signed another MoU for construction of the Red Sea Astrarium in Aqaba at a value of Dh5.7 billion. The pipeline also includes the one million housing units in Egypt, for Dh147 billion, and Dh14 billion worth of property development projects announced at Cityscape Abu Dhabi last month.
 

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