UAE-based Arkan Building Materials Company has registered a net profit of Dh36.13 million ($9.8 million) for the nine months ending September 30 compared to Dh10.2 million ($2.7 million) for the same period last year.
Announcing its consolidated financial results for the nine months ending September 30, 2019, Arkan said the overall group revenue for the period stood at Dh675.50 million, compared to Dh719.71 million in the same period last year, due to increased competition and pressure on prices.
A continued challenging market was offset by cost management initiatives, proceeds from an insurance claim and the sale of old assets at the Emirates Cement Factory earlier in the year, as well as a benefit from the preferred energy tariff provided only to entities that enhance the economic impact of the industrial sector in Abu Dhabi.
One of the leading construction and building materials companies in the UAE, Arkan said a continued challenging market was offset by cost management initiatives and proceeds from an insurance.
Commenting on the results, Chairman Engineer Jamal Salem Al Dhaheri said: "Achieving optimum efficiency across our business remains our utmost priority as we continue to navigate through this challenging business cycle."
"The Abu Dhabi Government’s economic stimulus programme is supporting the launch of new development projects and Arkan has won a number of significant new contracts, across different product ranges demonstrating our competitive proposition and operational capability," he noted.
Profits from the cement division increased, indicating the success of the implemented saving measures and the income realised from the sale of old assets, he added.
The Emirati group pointed out that the blocks and dry mortar section saw improved sales volumes and product range expansion, but profits declined due to a rise in the land lease tariff as well as increase in provision for receivables as per IFRS 9.
The performance of the Pipes and Bags divisions were impacted by a reduction in export sales volume, it stated.
The company continues to focus on the introduction and implementation of efficiency and sustainability initiatives at its plants.
This includes the adoption of new technologies such as Fusion Machines for sample preparation and a detailed review of ‘waste to fuel’ systems to reduce the use of fossil fuels.-TradeArabia News Service