Dubai-based contractor Arabtec reported a net loss of $61m (AED225.5m) in the third quarter of 2016, ending 30 September, attributable to the shareholders of the parent company.
The contractor reported an increase in revenue from continuing operations of 24.7%, to $544m (AED2bn) in the third quarter of 2016 as compared to $435m (AED1.6bn) in the same period last year. The increase is primarily driven by the new project awards of Q4 2015 and H1 2016.
The loss from discontinued operations, part of the group's operations in Saudi Arabia, amounted to $4.6m (AED17m), considerably lower than the loss of $21m (AED79m) in Q3 2015.
In the bourse statement, Eng Saeed Mohamed Al Mehairbi, acting CEO of Arabtec Holding stated: “Besides restructuring processes and cost reduction program during 2016, the group has focussed on improving and developing the company’s performance by establishing operational standards in order to improve operations and ensure high level of clients’ satisfaction.
"In this regard, we are proud of the level of completion and work progress at the Louvre Museum project, as we constantly strive to complete this landmark development and ensuring that it will be delivered in accordance with the highest quality standards."
During Q3 2016, Arabtec succeeded in securing new projects, including a five-star hotel in Dubai Media City to increase its new project wins for 2016 to $2.5bn (AED9.4bn).
In addition, Arabtec subsidiary, Target Engineering, has secured new project wins in Q3 2016, amounting to $27.2m (AED100m), to increase its new wins in 2016 to $224m (AED826m). During Q3 2016, Arabtec's backlog amounted to $5.4bn (AED20bn).