Arabtec triples net profit, jobs soar
Dubai, March 18, 2014
Net profits at Dubai builder Arabtec more than tripled in the final three months of last year, underpinned by an increasing backlog of work and growth in its key markets in the United Arab Emirates and Saudi Arabia, the company said on Tuesday.
The contractor, in which Abu Dhabi state fund Aabar is a key stakeholder, said it made a net profit of 122 million dirhams ($33 million) in the quarter, compared with 32 million dirhams in the corresponding period of 2012, on revenue up 39 percent at 2.3 billion dirhams ($626 million).
Full-year net profit rose to 377 million dirhams from 139 million dirhams in 2012.
The contractor, which went through a major management shake-up last year backed by Aabar, has won a series of contracts in the region recently including high-profile projects such as the development of Abu Dhabi's main airport and building of a Louvre museum and a contract to build 1 million homes in Egypt.
"Since the start of 2014, our company's subsidiaries have been selected to execute a series of new projects, with a total value of 180 billion dirhams, which gives us visibility on our earnings growth for many years to come," Hasan Ismaik, the chief executive of Arabtec said in a statement.
The company said its backlog of work in 2013 increased by 22 percent over the previous year to 24.1 billion dirhams ($6.56 billion).
Arabtec also proposed a cash dividend of 0.1 dirhams per share plus bonus shares worth 30 percent of its share capital. The company gave no dividend for 2012. - Reuters