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ABU DHABI, May 4 (Reuters) - Arabtec Holding on Thursday reported a tiny first quarter profit, its first since 2014, thanks to new projects and cost savings.
Arabtec has struggled for more than two years in a depressed market for infrastructure projects in the Gulf, its problems exacerbated by internal strife among shareholders and several senior management changes.
Arabtec made a net profit attributable to shareholders of 18 million dirhams ($4.9 million) in the three months ending March 31, compared to a loss of 46.4 million dirhams in the prior-year period, a bourse statement said.
The profit came on higher revenues of 2.17 billion dirhams in the quarter versus 1.96 billion dirhams a year ago. Cost savings included a restructuring and cutting jobs.
“While this is another step towards the turnaround of the group, there is still a lot more work to be done,” Arabtec's Chief Executive Hamish Tyrwhitt said in the statement.
“The recapitalisation programme is laying the foundation to allow the group to build on our three-stage plan.”
Last month Arabtec got approval from shareholders for a 1.5 billion dirham rights issue. Shareholders also approved plans to use existing capital to wipe out accumulated losses.
The company which reported accumulated losses of 4.6 billion dirhams last year, is asking banks to waive terms on its debt, banking sources told Reuters last month.
Arabtec shares were up 1.2 percent at 0.83 dirhams by 0707 GMT. ($1=3.6720 UAE Dirham) (Reporting By Stanley Carvalho, editing by Hadeel Al Sayegh and Susan Fenton)