Arkan Building Materials, one of the leading construction materials companies in the UAE, has posted its financial statements for the first half of the year 2018. The statements show a 38% drop in the company’s net profit in comparison to the net profit it achieved in the first half of 2017.
Although the net profits dropped, the net revenues of Arkan for the same period, on the other hand, exceeded the $128m mark which is 3% more than the revenues of H1 of 2018. This was due to the good performance of the sales of its pipes, blocks and mortar products. The company’s production capacity of mortar products have surged from 165,000 tonnes to 222,000 tonnes per annum.
In their comment on the drop of their profits, Arkan Group explained that one of the main factors which induced such reduction is the additional $3m costs that went to Al Ain Cement Factory due to its blending of Omani limestone with imported limestone in its operations.
Arkan chairman, Engineer Jamal Salem Al Dhaheri, said that the increasing sales of pipes, blocks, and dry mortar products have helped reduce the impact caused by the increased costs of Al Ain Cement Factory.