Abu Dhabi – Mubasher: Arkan Building Materials Company, listed on the Abu Dhabi Securities Exchange (ADX), generated a net profit of AED 36.13 million over the period from January to September 2019, compared to AED 10.20 million a year earlier.
The group managed to offset the challenging market through cost management initiatives, proceeds from an insurance claim, sale of old assets at the Emirates Cement Factory, and a benefit from the preferred energy tariff, according to a press release on Wednesday.
Total revenues declined to AED 675.50 million in the first nine-month of 2019, down from AED 719.71 million a year earlier, due to higher competition and price pressures.
Profits from the cement division showed a rise, signalling successful implementation of saving measures as well as the income realized from the sale of old assets.
Meanwhile, sales volumes and product range expansion from blocks and dry mortar grew, whereas profits fell due to some factors, including higher land lease tariff.
In line with its commitment to introduce efficiency and sustainability initiatives at its plants, Arkan has adopted several new technologies including, Fusion Machines which work to cut the use of fossil fuels.
“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,” Chairman of Arkan, Jamal Salem Al Dhaheri, said.
It is worthy to highlight that over the first half of 2019, the UAE-based firm achieved a net profit of AED 33.8 million, rising 55% year-on-year.
