Arkan's earnings almost double on cement output

25/08/2015 06:19 AST

The Abu Dhabi-owned, Arkan Building Material Company's profit grew 92 per cent year -on-year to Dh57.83 million in the first half of the year, as the commercial production from Al Ain cement plant contributed to it in a big way.

Part of Abu Dhabi's industrial arm, General Holding Company, Arkan reported 21 per cent year-on-year growth in revenues to Dh444 million.

Profits from Arkan's cement plant rose 120 per cent to 47.70 million up from Dh21.66 million. However, revenues grew 27.6 per cent to Dh334.37 million in the half yearly period. Arkan's Al Ain Cement Factory contributed revenues of Dh271.41 million in March- June 2014 period and a profit of Dh42.15 million.

Revenues from company's block manufacturing arm were up 12.35 per cent to Dh36.56 million from Dh32.54 million. Loss from this segment in H1 is Dh1.40 million as compared to a profit of Dh1.85 million due to higher depreciation cost resulting from capitalisation of the new blocks factory, the benefit of which will be reaped in the coming quarters, the company maintained. Arkan's GRP pipe manufacturing arm reported 38.61 per cent more revenues to Dh27.39 million up against Dh19.76 million. This segment generated a profit of Dh3.97 million in the first half of the year against Dh0.165 million.

PVC Pipes sales was Dh31.80 million in the January-June period compared to Dh31.64 million in the same period last year. Profit from this business rose to 0.925 million from Dh0.169 million, due to lower export sales volumes to countries affected by conflict.

The building material company maintained a strong liquidity position of Dh54.15 million at the end of January- June period.

The total assets of the group reached Dh3.71 billion at the end of the six months period. The value of shareholders' equity increased to Dh1.80 billion as compared to Dh1.79 billion in the same period last year.

The value of Investment in emirates Real Estate Fund was Dh75.76 million at the end of the first half of the year to the same value as at December 31 December 2014.

The share of profit from associates was Dh10.67 million compared to Dh4.12 million in the same period last year.

Arkan received cash dividends of Dh20 million from this investment during the period.

Khaleej Times