Arabtec wins two new contracts worth Dh210m for Abu Dhabi projects
One deal covers oil and gas work at an offshore island and the other is for a new commercial building in the city
April 6, 2020
A unit of Arabtec Holding, the UAE-listed construction company, won two contracts worth Dh210 million to carry out works at an offshore oil facility and and for the construction of a new commercial building in Abu Dhabi.
Target Engineering has been awarded a Dh84m by Adnoc Offshore, an offshore arm of the state owned Abu Dhabi National Oil Company. The project involves replacement works for 'slug catchers' – static pieces of equipment used in upstream oil production to minimise irregular flow from oil and gas pipelines. The work will take place at the Satah plant on Zirku Island, which is about 120km north west of Abu Dhabi.
“The contract works will commence immediately for a duration of 22 months. This award is line with the group’s strategic priority to diversify its backlog into different sectors, including the industrial sector,” Arabtec, said in a statement to the Dubai Financial Market, where its shares trade.
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The company has also been awarded a Dh126m contract for the construction of a 19-storey commercial building, Sunset Square, in Abu Dhabi. It will have a total built up area of about 27,000 square metres. Work on the project is expected to commence shortly and will take 30 months to complete.
Arabtec swung to a full-year loss in 2019 due to a decline in revenue amid a slowdown in the real estate sector.
Net loss attributable to the owners of the company for the period ending December 31 reached Dh774.5m, compared to a profit of Dh256.3m during the same period in 2018. Revenue for the period plunged 21 per cent to Dh7.78 billion.
The company attributed the loss mainly to weaker income from its construction business as liquidity for projects remained tight. A slowdown in the real estate sector that resulted in the awarding of a limited number of contracts, the settlements and recovery of claims and losses from an investment in an associate company also dented profitability.
Arabtec's industrial, infrastructure and mechanical, electrical and plumbing business lines, however, remained profitable last year, the company said when publishing its preliminary results in February.
In 2019, Arabtec won new contracts, including a Dh366m contract from Emaar Misr to build a residential project in Egypt. Target Engineering also won a Dh280m contract for the expansion and upgrade of a water disposal facility in Saudi Arabia.
Updated: April 6, 2020 02:51 PM
