Arabtec steering into open waters and out of trouble | The National

Arabtec steering into open waters and out of trouble | The National:

"At the start of this year I wrote about the hammering Arabtec’s share price had taken over the previous six months amid management and board upheavals, and concluded that the lesson from the saga was that, on balance, an open approach offers more gain than pain.

Yesterday, the construction company reported losses for the fourth straight quarter totalling about Dh2 billion over the whole period. In a statement, the construction company said that the most recent loss – and biggest so far – in the third quarter was the result of its “balanced approach to revenue, cost and profit recognition”.

In the third quarter, Arabtec reversed Dh379 million of previously recognised claims – or earnings – and took Dh136m of provisions against receivables that added to its operational expenses. That must have been hard to swallow for management, which remains fairly optimistic about growing Arabtec’s Dh18.7bn backlog in what it describes as a “very challenging” regional construction market."



'via Blog this'