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Arkan's net profits drop to AED 10.5m

Arkan's net profits drop to AED 10.5m
The company reported total revenues of AED 208m in Q1-20
Arkan
ARKAN
-0.61% 0.81 -0.01

Abu Dhabi – Mubasher: The net profits of Arkan Building Materials Company declined to AED 10.53 million during the first quarter (Q1) of 2020, compared to AED 12.213 million in the same period of 2019.

The decrease in net profits is attributed to a decline in income recognised from the sale of scrap assets from the closed Emirates Cement Factory, according to the company's consolidated interim financials for the period ended on 31 March 2020.

The company reported total revenues of AED 208.166 million in the Q1-2020, down from AED 234.990 million in the corresponding period of 2019.

At the same time, the earnings per share (EPS) stood at AED 6 in the January-March period of 2020 from AED 7 in the same period of 2019.

Commenting on the company's performance in the Q1-2020, the chairman of Arkan, Jamal Salem Al Dhaheri, said: "The challenging construction market has not been helped by the emergence of COVID-19, towards the end of the first quarter."

Al Dhaheri added: "The increase in operating profit is due to a better performance from our Pipes business and the cost control measures the management team has been implementing right across the business."

It is noteworthy to mention that in 2019, the company's net profits dropped to AED 45.682 million in 2019 from AED 53.460 million in 2018.