Abu Dhabi: Arkan Building Materials Company profits dropped to Dh2.1 million in the first-half of the year, as construction activity was disrupted by COVID-19 responses.
Last year’s net was Dh33.7 million, boosted by a one-off payment of Dh25.30 million from the sale of scrap assets at Emirates Cement Factory and proceeds from an insurance claim in the Crescent Division.
This year’s overall revenue was Dh387.4 million, down from Dh458.8 million last year, with the drop being attributed to lower sales of building materials due to road closures, restrictions in delivery hours because of the disinfection programme, as well as the closing of industrial zones.
Cement-led revenues were down to Dh196.5 (Dh282.7 last year), with profits also down at Dh7.91 million from Dh45.69 million. Concrete blocks and dry mortar revenue were at Dh98.41 million, generating profits of Dh2 million,.
“Arkan has proven its ability to manage through even the toughest market environment and still remain profitable,” said Jamal Salem Al Dhaheri, chairman. “This was due to the strong and decisive measures taken by management to implement over Dh30 million of cost improvement initiatives across the business, as well as the team’s ability to continue uninterrupted supply to customers.”
The company’s cash and cash equivalents position was up year-on-year to Dh53.8 million, with total assets worth Dh3.4 billion.