Page 65 - September 2020

Construction

Arabtec incurs net loss of $216.2m in H1

2020 due to ‘limited liquidity’

Arabtec Holding, listed on the Dubai Financial in the same period in 2019.
Market, has reported a net loss of $216.2m Meanwhile, other core businesses including
(AED794m) in the six-month period ending 30 Target, Arabtec Engineering Services and
June, 2020, due to ‘limited liquidity’ in the real EFECO “traded profitably and remained well-
estate and construction sector. positioned” within the industrial, infrastructure,
Revealing the H1 2020 financial results in a stock and mechanical, electrical and plumbing (MEP)
market missive, the company said that the net loss sectors.
was directly attributed to the group’s construction Arabtec Holding has been in talks to appoint an
business under the name Arabtec Construction. advisory firm to assist the management in a capital
and debt restructuring process.
Other reasons for the accumulated net loss also The company said that in the upcoming General
include, limited settlement and recoverability of Assembly that will be held in the next 30 days, the
contractual claims; the effect of COVID-19, which shareholders will be required to vote on whether
resulted in reduced progress on projects and the company should be dissolved or determine the
additional costs; limited number of new contract most appropriate restructuring plan.
awards due to a bearish real estate sector. Last month, Target Engineering Construction
The company’s financials were in green in H1 Company was awarded a contract worth
2019, as it had posted a net profit of $13.3m $53.3m (SAR200m) from Saudi Aramco for the
(AED49m). replacement of five storage tanks at Ras Tanura
Revenues in H1 2020 dropped by 39.2% to Refinery in the Kingdom’s Eastern Province.
$823.8m (AED3.01bn) from $1.2bn (AED4.12bn)

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