Arabtec Holding, the Dubai-listed construction firm, outlined on Thursday a detailed recapitalization plan, which aims to see a return to profitability from 2019 after over two years of losses.
In an investor presentation posted to the Dubai bourse website, Arabtec said its plan includes three phases over this year and the next two years, and should see Arabtec securing an annual backlog of new projects of at least Dh8 billion to Dh9 billion from 2018. This would then bring consistent growth in net profit from 2019.
In the first phase, the company will implement its recapitalization programme, dispose of non-core assets, resolve legacy project claims, and implement a strong risk management approach.
In the next one in 2018, Arabtec said it plans to secure new projects, recycle capital, and ensure on-time and on-budget delivery of projects.
The company is then targeting growth in 2019, which will also see a return to dividend distribution.
Thursday’s announcement did not do much to prop up share prices, however, with shares down 0.89 per cent in the first half hour of trade. Shares were not among the most actively traded either, and remained below the Dh1 mark, at Dh0.895.
The presentation comes after Arabtec announced in mid-February it plans to reduce its capital and launch a Dh1.5 billion rights issue as it reported its ninth consecutive quarter of losses. The company’s net loss in 2016 reached Dh3.4 billion, widening from the Dh2.35 billion recorded a year earlier.
By Sarah Diaa
