06 April, 2020

Arabtec subsidiary bags contracts worth $57mln in Abu Dhabi

Target Engineering bags contracts in oil and gas, and real estate sectors

Image used for illustrative purpose. Oil rig tender type is working on oil and gas remote platform to completion gas reservoir well in oil field or oil and gas company industrial.

Image used for illustrative purpose. Oil rig tender type is working on oil and gas remote platform to completion gas reservoir well in oil field or oil and gas company industrial.

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Arabtec Holding announced on Monday that its wholly owned subsidiary, Target Engineering, has been awarded two projects totaling 210 million UAE dirhams ($57 million) in Abu Dhabi.

The company said in a stock exchange statement that Target Engineering was awarded an 84 million dirhams ($23 million) contract by ADNOC Offshore to carry out the engineering, procurement, construction and commissioning works for the replacement of existing Slug Catchers at the Satah Plant on Zirku Island, Abu Dhabi.

Slug catchers are static equipment used in the upstream oil production facilities to minimise the slug from oil and gas pipelines.

The contract would be completed over a 22-month period, the statement said.

The DFM-listed company said the second contract, worth 126 million dirhams ($34 million) and excluding main consultant's fees, was awarded [by an unnamed client] for the construction of Sunset Square tower in Abu Dhabi. Target's scope of work includes the construction of a 19-storey commercial building with a total built up area of approximately 27,000 square metres.

Project works are expected to commence shortly and would be completed over a 30-month period, the statement noted.

In February, Arabtec had reported a 774 million dirhams ($210.73 million) net loss for 2019 compared to a net profit of 256 million dirhams in 2018, due to a slowdown in the real estate market. The company's revenue stood at 7.785 billion dirhams in 2019, a 21 percent drop from the 9.853 billion dirhams reached in 2018.

(Writing by Syed Amen Kader; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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