Dubai: Arabtec Holding Co., the biggest construction company in the United Arab Emirates, reported its first annual loss amid a construction slowdown in the country.
The company posted a net loss of Dh2.35 billion or 51 fils per share, compared with a profit of Dh214.6 million, or 5 fils a year earlier. Revenue slid 12 per cent to Dh7.3 billion, Arabtec said.
The Dubai-based company cited the “difficult environment that the regional construction market is facing” for the loss and said it’s seeking to further reduce costs. The contractor, controlled by Abu Dhabi’s Aabar Investments, has been restructuring and trimming expenses since a selloff in June 2014. At the time, chief executive officer Hasan Ismaik resigned and several top managers were dismissed amid speculation that the company was losing government backing.
The company, which is building a branch of the Louvre museum in Abu Dhabi, said its backlog is worth Dh19.3 billion and it’s continuing to win work. The company said it has received letter of intent from the ministry of transportation in Bahrain for a $1.1 billion joint venture with TAV Construction. Last month, Arabtec was awarded a Dh2 billion contract from Aldar Properties to build 1,017 villas.
