Arabtec's accumulated losses amount to 97% of the capital

The UAE company Arabtec Holding recorded losses of 794 million dirhams during the first half of 2020, compared to profits of 57.9 million dirhams in the same period in 2019.

According to Arabiya Net, the company attributed the reason for recording losses during the current period to the lack of liquidity in the real estate and construction sector, which affected the progress of work on projects and the ability to predict costs Expected.

She also referred to the impact of the Covid-19 pandemic, which has caused a slowdown in the pace of project completion and increased costs, a slowdown in real estate sector activity and thus limited new opportunities available.

The company said in a statement to Dubai Market that the accumulated losses amounted to 1458.26 million dirhams, constituting 97.22% of its capital of 1500 million dirhams.

Arabtec explained that the main reasons that led to these accumulated losses were limited liquidity in the real estate and construction sector, which led to delays in many projects, and thus incurred Additional costs related to delay.

In addition, the slowdown in real estate sectors, which led to limited winning of new projects in 2020, and delays in settlements and recovery of dues and claims, which led to a decrease in cash flows and monitoring Additional allocations.

she added that the large delays and the increase in the expected cost of some major projects led to additional losses in the first half of 2020.

measures to address accumulated losses

Regarding the measures that will be taken to address the accumulated losses, she said that it will focus on closing and handing over all old projects and projects scheduled to be completed in the short term in order to obtain acquisition certificates, contain expected project costs and achieve commercial settlement.

in addition to following up all legal and commercial entitlements through all possible channels to ensure and restore the group's contractual rights, and restructure its continuity, including merger and transformation, to reduce operational costs.

Arabtec Holding indicated that it will sell non-core assets to increase its liquidity.

(Amazon fun knowledge)