Arabtec and Samsung to make joint bid for giant projects

Updated 18 April 2013
0

Arabtec and Samsung to make joint bid for giant projects

Arabtec, the contractor part-owned by Abu Dhabi fund Aabar, signed an agreement with Korea’s Samsung Engineering Co. to jointly form a new company that will focus on large energy and power-related projects in the region.
The Dubai-based builder, which is planning a $1.8 billion capital increase as part of its expansion drive, said the new firm would be 60 percent owned by Arabtec and headquartered in of Abu Dhabi.
Samsung Engineering would own the remaining 40 percent, the two companies said in a joint statement.
Under the terms of the agreement, the new firm will exclusively bid for projects in oil and gas, power and infrastructure segments in the Middle East and North Africa, in contracts ranging between $ 3 billion and $ 10 billion, the statement said.
Arabtec is keen to expand into the oil and gas construction business and is also set to acquire the remaining 40 percent it does not already own in UAE oil and gas construction firm Target Engineering, according to sources familiar with the plan.
Arabtec replaced its chief executive in February as part of the shake-up led by Aabar, which has been tightening its grip on the group.
Hasan Abdulla Ismaik, managing director and CEO of Arabtec, said, “We have a successful history partnering with Samsung Engineering’s sister company, Samsung C&T. We have already worked together on some of the region’s highest profile projects, including Burj Khalifa.”
He added: “This JV is the logical next step in the relationship between the two companies. Arabtec-Samsung Engineering will be well-positioned to capitalize on the exciting growth opportunities in oil and gas, power and infrastructure. Samsung Engineering is already the leading EPC contractor in MENA, with their experience and track record of successfully executing large scale projects, Arabtec has the right partner to achieve its strategic goals in EPC.”
Park Ki-Seok, Samsung Engineering’s President and CEO, said: “Samsung Engineering is currently executing major projects in the UAE, worth $ 9 billion. Through this partnership with Arabtec to form a JV, we hope to expand our presence in MENA as well as contributing to the development of the local UAE community.”
Khadem Al Qubaisi, chairman of Arabtec Holding, said “Our partnership with Samsung Engineering is evidence of our growth strategy being put into action. The Joint Venture will be a powerful alliance of two market leaders with complementary skills in engineering, procurement and construction. We are currently considering further joint ventures, with world class companies to progress other areas of Arabtec’s growth strategy.”


Boeing abandons 2019 outlook after 737 MAX aircraft groundings

Updated 24 April 2019
0

Boeing abandons 2019 outlook after 737 MAX aircraft groundings

  • Boeing’s core earnings fell to $1.99 billion, or $3.16 per share
  • The planemaker said it faced $1 billion in increased costs in the first-quarter ended March 31

Boeing missed sharply-lowered Wall Street estimates for revenue and cashflow in the first quarter and suspended its 2019 outlook, as the world’s largest planemaker continued to suffer from the grounding of its 737 MAX jets.

The company said it faced $1 billion in increased costs in the first-quarter ended March 31, related to the 737 aircraft as it halted deliveries of the grounded planes to customers around the globe.

The company also said it was halting share buybacks.

The fallout of a second deadly crash within months in March has seen Boeing cut production of the jets to 42 aircraft per month, down from 52, and its operating cash flow in the first quarter was around $350 million lower than a year earlier.

Boeing is also spending on developing a fix for an anti-stall software known by the acronym MCAS, which has been a common link in the separate chains of events leading to the two crashes within a span of five months.

The company said it would be issuing a new forecast in the future when it has more clarity around the issues surrounding the 737 MAX.

First-quarter operating cash flow declined to $2.79 billion, from $3.14 billion, missing the Wall Street’s average estimate of $2.82 billion.

Revenue fell 2 percent to $22.92 billion, below analysts’ average estimate of $22.98 billion.

Excluding certain items, Boeing said its core earnings fell to $3.16 per share, in the quarter from $3.64 per share, a year earlier. Analysts had expected Boeing to earn $3.16 per share.