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Arabtec Holding Releases FY 2017 Preliminary Unaudited Results

Dubai, UAE – 13th February 2018: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced its 2017 preliminary unaudited financial results. The Group reported a net profit to parent of AED 123.1 million on revenue of AED 9.1 billion for the 12 months ending 31 December 2017. The Group’s backlog remained strong at AED 17.2 billion, well-supported by a number of quality awards.

Highlights:

* In Q4 2017 major new wins included the Forte Phase 2 contract from Emaar Properties (AED 950 million), Villanova contract from Dubai Properties (AED 1.0 billion) and the Opera District project from TAV Tepe Akfen Construction ( AED 250 million) * Revenue increased to AED 9.1 billion in FY17 compared to AED 8.2 billion in FY16; up 12% y-o-y * Net profit attributable to Parent was AED 123.1 million compared to a net loss of AED 3.4 billion in FY16 * Backlog of AED 17.2 billion at 31 December 2017 with a solid pipeline of tender opportunities across the Group going forward

A major highlight in Q4 was the opening of the Louvre Abu Dhabi. Arabtec proudly played a key role in the delivery of this landmark project, highlighting its contribution and competencies in delivering social and economic infrastructure in the UAE. Furthermore, the Group continued to better leverage synergies from its operating companies and investments through closer integration with its core operations. Operationally, Arabtec continued to implement more innovative approaches to enhance work and delivery methodologies.

Group Chief Executive Officer Hamish Tyrwhitt said: Reinforcing our commitment to return to growth and deliver on our strategic roadmap, we have achieved four consecutive quarters of profitability. With the support of our employees, board, shareholders and other stakeholders, we have stabilised the business in 2017, creating a solid foundation that we will build on through 2018. Together with our core values, we remain committed to building a successful and sustainable future for Arabtec and all its stakeholders.’

EFECO wins AED 250 million Project in Opera District from TAV Tepe Akfen Construction

Dubai, UAE – 07 January 2018: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced that its wholly owned subsidiary, EFECO (Emirates Falcon Electromechanical Co.) has entered into a contract with TAV Tepe Akfen Construction for a AED 250 million project for the MEP works of Tower A2 and A3 of Plot A in the Opera District by Emaar Properties.

The project consists of MEP works for two Towers, A2 and A3 with a common basement in Plot A of the Opera District in Downtown Dubai. The total number of apartments is 809 over a built-up area of 2.35m square feet. The project works will commence in January 2018 for a duration of 34 months.

Group Chief Executive Officer Mr. Hamish Tyrwhitt commented: "We are pleased that EFECO has been awarded the Opera District project. We look forward to working on another project for Emaar Properties as we continue to build on our solid relationships in our core markets”

Arabtec Awarded AED 1.025 Billion Contract from Dubai Properties for Villanova

Dubai, UAE – 28 December 2017: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced that its wholly owned subsidiary, Arabtec Construction has been awarded a AED 1.025 Billion contract from Dubai Properties for Villanova Amaranta and La Quinta Phases. The project involves the construction works for a residential community that includes villas and townhouses. EFECO (Emirates Falcon Electromechanical Co.), another wholly owned subsidiary of Arabtec Holding, will be carrying out the MEP works for the project.

Villanova displays influences of Mediterranean architecture with the use of columns, arches, textured facades and slanted roofs with spacious units.

Villanova is located off Emirates Road, between Al Ain Road and Al Qudra Road 10 minutes from Business Bay. The project works are expected to begin immediately with an overall duration of 28 months.

Group Chief Executive Officer, Mr. Hamish Tyrwhitt comments: “We look forward to working on the Villanova Project and to developing our relationship with Dubai Properties. This contract reflects the Group’s ability to deliver projects tailored to our client’s requirements. We continue to onboard new projects through the 4- Gate Work Winning Process, which is designed to selectively win work that has the ability to deliver successful outcomes which will continue to support the Group to capitalise on the positive long-term outlook for the construction and engineering sector in our core geographic markets.”

Arabtec’s Subsidiary TARGET awarded AED 950 million Forte Phase 2 contract from Emaar Properties

Dubai, UAE – 21 November 2017: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced that its wholly owned subsidiary, Target Engineering Construction Company (‘Target’) has been awarded Phase 2 of Forte, a residential development in Downtown Dubai by Emaar for AED 950 million.

The contract scope includes the construction of the podium and twin towers of 67 and 46 floors, which is in addition to Phase 1, that was previously awarded to Target for the construction of 5 basements for the 2 residential towers. The duration of Phase 1 and 2 will be 40 months.

Group Chief Executive Officer, Mr. Hamish Tyrwhitt comments: “The award of Forte Phase 1 & 2 to Target Engineering demonstrates the strength and confidence of the Groups’ relationship with Emaar Properties. We look forward to further building the solid relationships we have with our clients in delivering quality projects. “

Arabtec’s Subsidiary TARGET awarded AED 196 million contract from Emaar Properties

"Dubai, UAE – 26 September 2017: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced that its wholly owned subsidiary, Target Engineering Construction Company (‘Target’) has been awarded an AED 196 million project by Emaar Properties for the main contract works of Phase 1 of Forte, the project in Downtown Dubai.

The contract scope includes the construction of 5 basements for 2 residential towers. The project willcommence this month for a duration of 12 months.

Group Chief Executive Officer, Mr. Hamish Tyrwhitt comments: “We look forward to working on another project with Emaar Properties. We continue to win projects that are aligned with our key geographies and our key competencies whilst maintaining a robust risk management approach.”

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Arabtec Holding reports Q3 2017 financial results

Dubai, UAE – 8th November 2017: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced a net profit of AED 75 million for the 9 months ending September 2017 and a 3.2% year-on-year growth in revenue to reach AED 6,346 million.

HIGHLIGHTS

  • In Q3 2017 major new wins included 1,296 Villas at AKOYA Oxygen by DAMAC (AED 628 million), the Dubai South Mall by Emaar (AED 363 million) and Phase 1 of Forte by Emaar in Downtown Dubai (AED 196 million)
  • Revenue increased to AED 6,346 million in 9M17 compared to AED 6,148 million in 9M16; up 3.2% y-o-y
  • Net profit attributable to Parent was AED 75 million compared to a net loss of AED 458 million in 9M16
  • Backlog was AED 16.8 billion with a solid pipeline of tender opportunities across the Group going forward

Hamish Tyrwhitt, Group Chief Executive Officer said: “We have now delivered our third consecutive quarter of profitability, supported by new project wins across our operating companies. The Group remains on track to achieving the first phase of its strategic road map to “stabilize” the business in 2017, ensuring long-term, profitable and sustainable growth.”

A key highlight in the quarter was the announcement by the Abu Dhabi Tourism & Culture Authority that the Louvre Abu Dhabi will open in November 2017. Arabtec played a key role in delivering this landmark project which highlights its contribution and competencies in delivering social and economic infrastructure in the UAE.

Hamish Tyrwhitt said: “We are proud to have taken part in the delivery of such an iconic project in the UAE.”

Strengthening governance has been an ongoing focus for the Group with the continued roll out of the 4-Gate Work Winning Process across all operating companies, which is demonstrating a more selective approach to Arabtec’s new work pipeline through a clearer understanding of the addressable market including, core competencies, geographies, sectors and clients. Operationally, Arabtec continued to drive accountability into the business through rigorous project and business performance reporting and reviews, with a strong emphasis on cash, receivables and closing out legacy projects.

Backlog has remained strong at AED 16.8 billion, supported by new project awards across all operating companies, reflecting a more selective approach to tendering. Arabtec remains confident that the strength and quality of the new work pipeline in the region will continue to support the Group’s business objectives.

In Q3, Arabtec continued to strengthen its management with the on-boarding of key appointments, underpinning the development of capable, empowered senior management across the Group.

The Group continues to assess further divestments and options to more seamlessly integrate it’s operating companies to improve efficiency and productivity. In the quarter, Arabtec divested its 14.6% stake in Jordan Wood Industries PSC, a listed Jordanian company, which manufactures office and household furniture.

Hamish Tyrwhitt said: “Overall I am pleased with the progress made so far this year to stabilize the business. I look forward to making further progress in Q4 on divestments and closer integration of our operating companies alongside strengthening our risk management processes. These final deliverables will put us on track to “prepare” the business for growth in 2018. ”


SUMMARY FINANCIAL RESULT

AED (mn)Q3 2017Q3 2016Variance9M 20179M 2016Variance
Revenue2,1001,987113 6,3466,148198
EBIT39(264)303125(471)596
EBIT Margin (%)1.8% (13.2%)2.0%(7.7%)
Net Profit/ (Loss) for the period10(281)29152(524)576
Margin (%)0.5%(14.1%) 0.8% (8.5%)
Net Profit attributable to equity holders of the parent18 (226)24475(458)533
Net Profit attributable to Non-Controlling Interest(8)(55) 47(23)(66)43



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Arabtec Construction has been Awarded an AED 363 million contract for Dubai South Mall

"Dubai, UAE – 07 August 2017: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced that its wholly owned subsidiary Arabtec Construction has been awarded an AED 363 million contract for the construction of the Dubai South Mall. Arabtec Construction has been awarded this project by the Joint Venture between Emaar Properties PJSC and Dubai World Trade Centre.

The Dubai South Mall will have a built up area of approximately 83,000 square-meters comprising a Ground Level consisting of a grade level parking and a Hypermarket, First and Second Levels that include F&B, Cinema, Family Entertainment Facility, Food Court and Retail Shops. The Mall will be located in Dubai South which is a 145-square-kilometre city on Dubai’s southern border that encompasses the Al Maktoum International Airport, the Expo 2020 site and a major logistics district.

Group Chief Executive Officer, Mr. Hamish Tyrwhitt commented: “We continue to build strong relationships with our clients and are pleased to announce the award from the Joint Venture of Emaar Properties PJSC and Dubai World Trade Centre for the construction of the Dubai South Mall and look forward to delivering another project at the Expo 2020 Site. Our recent project wins demonstrate the trust we are developing with our clients to deliver projects. We are also building that trust with our shareholders, in our ability as management, to then deliver on those projects. We continue to adopt a selective risk management approach in order to capture jobs within our core competencies and strategic focus.”

The project work will commence this month.

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Arabtec Construction has been awarded a AED 628 million Project from DAMAC Properties for the construction of Villas at AKOYA Oxygen

"Dubai, UAE – 31 July 2017: Arabtec Construction, a wholly owned subsidiary of Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced the award of a AED 628 million contract from DAMAC Properties for the design and construction of the main works for 1,296 villas of the ‘Akoya Oxygen’ master development in Al Yufrah 2, Dubai.  

Group Chief Executive Officer, Hamish Tyrwhitt comments: “We are pleased to be continuing our long standing collaboration with DAMAC Properties which demonstrates our track record in delivering projects for our key clients in the UAE. Arabtec’s recent awards show that our selective onboarding of projects across our operating businesses is developing a strong pipeline of work aligned with our core competencies and strategic direction.”  

The 24 month project will commence this quarter. AKOYA Oxygen is a 5‐million‐square‐foot master development that will showcase the greenest living spaces in Dubai and is home to an 18‐hole championship golf course. The community will also comprise shopping, retail, entertainment and hospitality components, amongst others to complement its residential offering of villas, apartments and serviced units.  

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Target Engineering Construction Company, a Wholly Owned Subsidiary of Arabtec Holding Seals Project Awards Worth AED 289 Million

"Dubai, UAE – 05 July 2017: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced that its wholly owned subsidiary, Target Engineering Construction Company (‘Target’) has been awarded four projects amounting to AED 289 million.

The scope of projects covers an array of specialisations of which include:

  • Cofferdam Removal & Revetment Construction in Western Region
  • Award-winning high-rise development in Dubai’s Business Bay
  • Fabrication & Installation of Duplex/SS Process Tanks in Taweelah Area
  • EPC Substation Works (Upgradation & Replacement) on Das Island

Target Engineering Chief Executive Officer, Mr. Chaouci Yassine said: “Target Engineering over the years has developed a strong experienced workforce, solid financial standing, and evolved into a key player within the region with core capabilities of delivering complex projects in the Industrial Oil & Gas, Social Infrastructure, Marine, and High Rise Tower market sectors. Such awards demonstrate the growth of Target’s expertise and performance in the global market over the past 4 decades. We continue to strive to uphold our market share in EPC and specialist projects.”

Group Chief Executive Officer, Mr. Hamish Tyrwhitt commented: “We are pleased to announce the continuous success and efforts within the Group. Target, together with the Group’s other operating entities, demonstrates our integrated capabilities but also our core strength giving us the ability to pursue a broad range of projects. We continue to focus on the UAE as our core market and are optimistic on the outlook of the sector.”

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Arabtec wins AED 353 million award for the UAE Pavilion at Expo 2020

"Dubai, UAE – 04 July 2017: Arabtec Construction a wholly owned subsidiary of Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today has been awarded with an AED 353 million contract from Abu Dhabi National Media Council to build the UAE Pavilion at Expo 2020 which is located opposite Al Wasl Plaza in the centre of the 4.38 square kilometre exhibition area.

Designed by Spanish architect Santiago Calatrava and inspired by a falcon in flight, the UAE pavilion will be one of the most important landmarks at the Expo 2020 Dubai. Construction on the pavilion is scheduled to begin this month and delivered in the last quarter of 2019. The Pavilion is set on an area of 15,000 square meters, with a built up area 19,200 square metres and is comprised of a 2,000 square meter upper floor and a 662 square meter mezzanine, with a plaza level and related facilities spread across 3,000 square meters. The ground level includes a garden and car park spread across 13,300 square meters.

Group Chief Executive Officer Mr. Hamish Tyrwhitt commented: “The UAE Pavilion project marks yet another achievement on our roadmap to a sustainable and successful future. It highlights our strategic focus on the UAE as our core market and also demonstrates our commitment to building our future through the development of social infrastructure in addition to instilling a performance based culture within our organisation”.
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EFECO wins AED 113 million Project in Dubai Creek Harbour Development

"Dubai, UAE – 03 July 2017: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced that its wholly owned subsidiary, EFECO (Emirates Falcon Electromechanical Co.) has entered into a contract with Al Naboodah Co LLC for a AED 113 million project for the MEP works of Creekside 18 Project at the Dubai Creek Harbour development, a joint venture of Emaar Properties and Dubai Holding.

Dubai Creek Harbour is located next to Ras Al Khor wildlife sanctuary, and is a 6 sq km mixed-use development with waterfront resorts, a yacht club and a marina as well as retail and commercial space. EFECO has been selected for the execution and completion of the MEP works of two 37-storey residential towers. The duration of the project will be 22 months.

Group Chief Executive Officer Mr. Hamish Tyrwhitt commented: ""We are pleased that EFECO has been awarded the Creekside 18 Project at the Dubai Creek Harbour Development. This award demonstrates our integrated capabilities across our operating entities and provides core competency service to our clients. We continue to remain on track as we execute our strategic roadmap.”

EFECO will commence work on the project in July 2017 for a duration of 22 months.

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Arabtec Holding Completes its Recapitalisation Programme

"Dubai, UAE – 28 June 2017: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced that it has completed its Recapitalisation Programme which raised AED 1.5 billion in equity and extinguished the company’s accumulated losses of AED 4.6 billion as at December 31 2016.

Group Chief Executive Officer, Mr. Hamish Tyrwhitt commented: “We are pleased to announce the successful completion of the Recapitalisation Programme. This has now strengthened the Group’s financial and liquidity positions but also provided a solid foundation for growth. We have now concluded the main objective in Phase 1 of our strategic roadmap, to ‘Stabilise’ the business. I look forward to the journey ahead and to focus on our primary objective of profitability and developing a successful and sustainable future for all our stakeholders.”

Arabtec Holding’s Board launched the Recapitalisation Programme in April 2017 in order to strengthen the company’s capital structure and accelerate its path towards dividends. The completion of the Programme alongside the company’s focus on implementing a strong risk management processes, positions the company well to capitalise on the positive outlook of the construction and engineering sectors in its key geographies.

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Arabtec Holding increases its share capital by AED 1.5 billion following the completion of its Rights Issue

"Dubai, UAE – 20 June 2017: Arabtec Holding PJSC (“Arabtec” or “Group”), a leading contractor for social and economic infrastructure, today announced that its rights issue has been fully subscribed and the Board has approved the increase of Arabtec’s share capital from AED 4.6 billion to AED 6.1 billion. The new shares are expected to be listed on the Dubai Financial Market and begin trading on Wednesday, June 21st 2017, subject to regulatory approval.

Group Chief Executive Officer, Mr. Hamish Tyrwhitt commented: “This marks a very important milestone for Arabtec Holding and signifies the ongoing support of our shareholders, both new and existing, who have not only invested in the company, but in the people of the company and their vision and mission for the future. I would like to thank our shareholders for their continuous support which has helped put us on track to reposition the Group to maintain profitability and develop a successful and sustainable future for all our stakeholders.”

The Company intends to use the net proceeds from the Rights Issue to fund completion of ongoing projects, support management’s business plan, and provide financial flexibility to pursue growth opportunities.

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Arabtec discloses further details on its AED 1.46 billion contract

"Dubai, UAE – 22 May 2017: Arabtec Holding PJSC (“Arabtec” or “the Group”), a leading contractor for social and economic infrastructure, yesterday announced that its subsidiary, Arabtec Construction, has been awarded an AED 1.46 billion contract by wasl Asset Management Group (wasl LLC) for the construction of the wasl Tower, which was referred to as ‘2020 Tower’ in our previous release, a mixeduse high-rise tower in the heart of Dubai. Developed by wasl Asset Management Group, the tower located opposite the Burj Khalifa, will comprise 62 floors and reach a height of 300 metres. The project will have a total built-up area of 169,320 square metres and will encompass commercial and residential space, including 148 residential apartments and a five-star 257 room hotel. wasl Tower will include residential compounds supported by floors of social halls and will be home to sports facilities, retail outlets, restaurants, cafés and other services, thus creating a fully integrated residential offering. The tower will incorporate ceramic and other revolutionary materials to help regulate its interior temperature and reduce noise from its surroundings, while its vertical garden will support sustainability and help to significantly reduce its carbon footprint. Designed by award-winning Dutch architect, UN Studio and German engineer, Werner Sobek, construction on wasl Tower is scheduled to commence in the third quarter of 2017 and will take approximately 34 months to complete, in time for the highly anticipated Expo 2020 Dubai. His Excellency Hesham Al Qassim, CEO of wasl Asset Management Group, added: “We have worked with Arabtec previously and are pleased to be working with the Group again, as its rich portfolio of clients is testament to the professional, timely and quality-minded manner in which it operates. We are confident that Arabtec will deliver work that meets wasl’s high standards, and that once complete, the project will stand as a model for the high lifestyle that towers can offer not only in the UAE but across the world. We are also proud to be contributing to the growth of Dubai’s real estate and hospitality sectors with wasl Tower, in line with our wise leadership’s directives.” Hamish Tyrwhitt, Group Chief Executive Officer of Arabtec Holding, said: “Arabtec continues to play an important role in the development of the UAE’s social and economic infrastructure. The contract for the construction of the wasl Tower has been awarded based on our track record of delivering worldclass mixed-used developments, adding to Arabtec Construction’s existing portfolio of over 22 projects we are currently building in the UAE.” Tyrwhitt added: “The long term outlook for the construction and engineering sector in our key geographic markets remains positive, especially in the UAE, where the majority of our projects are located. With the combination of the strategic repositioning of the business, strong industry fundamentals and catalyst events such as Expo 2020 fast-approaching, we believe that the year ahead will see Arabtec continue on its path to a successful and sustainable future.” Arabtec has a project backlog of approximately AED 17 billion, equivalent to over two years of revenue. The awarding of the project marks the latest key milestone in Arabtec’s three-phase strategic plan to return the Group to growth, and highlights the continuing strength of the Group’s operating divisions and its strong, committed growth pipeline. "