Target Engineering Construction, a subsidiary of Dubai-based contractor Arabtec, has won a 14-month contract worth $39m despite the collapse of its parent.
Target, which is based in Abu Dhabi and mainly handles oil, gas and offshore work, has signed a subcontract with the Shandong Tiejun Electric Power Engineering Company for marine construction works at the Jubail-3A water project in eastern Saudi Arabia.
Jubail 3A is a $650m desalination plant that will eventually produce 600,000 cubic metres of potable water a day. Â
Arabian Business reports that Arabtec Holding has requested that banks allow Target a three-month delay for debt repayments.
It is understood that the company may be able to survive the collapse of Arabtec as an independent company.
Arabtec shareholders voted to dissolve the company in September this year. The firm, which was founded in 1975, reported a net loss of $213m in the first half of 2020, but had $18bn of projects under construction.
Arabtec Holding was valued at about $8.2bn at its peak in 2014, but is now worth about $216m, with the stock down 60% this year alone.
Image courtesy of Arabtec