Mukhtar Safi, Chief Financial Officer of DSI
Drake & Scull International PJSC (DSI), a regional market leader in the integrated design, engineering and construction disciplines of General Contracting, Mechanical, Electrical and Plumbing (MEP), Water and Power, Rail and Oil and Gas reported today total Revenues of AED 1.24 billion and total Net Profit of AED 25.2 million for Q3 2014 ended September 30th representing a year on year top line increase of 25 % and bottom line decrease of 16 % respectively.
Earnings per Share (EPS) reported for the same period was AED 0.009.(EBITDA) was AED 75.1 million compared to AED 74.4 million reported for the same period in 2013.
Operating profit for Q3 2014 closed at the same level of Q3 2013 after the provisions taken on the arbitration case for a legacy contract in UAE.
Project awards year to date reached AED 5.4 billion in KSA, UAE, Qatar, Oman, Kuwait, Algeria, Egypt, and India & Europe. The total Order Backlog reached a record high closing at AED 15.3 billion as of the 30th of September representing a 24.5 % year on year growth. The KSA remains the largest market for DSI contributing 35 % of the backlog. The General contracting and Engineering businesses each contributed 48% and 33% respectively. The Oil & Gas and Waste Water and Water Treatment businesses increased their contribution to 15 % and 4 % to the overall backlog driven primarily by operations in the Iraqi and the Egyptian markets and the Indian and the European markets respectively.
Revenuesand Net Profit earned for the first nine months ended September 30th 2014 were AED 3.59 billion and AED 96.9 million compared to AED 3.56 billion and AED 145 million reported last year.
EPS was AED 0.038 compared to AED 0.054 and EBITDA was AED 244.1 million compared to AED 289.4 million reported for the same period last year.
Commenting on the results, Mukhtar Safi, Chief Financial Officer of DSI said, “Q3 2014 was exceptionally a good quarter in terms of backlog burn and profitability margins despite the provisions of AED 25 million taken against the arbitration case on our legacy contract in the UAE.”
“Operating cash flow remains stretched until we finalize our negotiations on the large claim and variations orders with some of our major client in KSA. Our teams in KSA achieved major milestones and received payment reassurances towards the completion of this challenging project by Q2 2015.”
“Overall, we have picked up operational momentum in our key markets in the GCC and particularly in the UAE. Our revenues for the quarter from the Engineering business and the General contracting business also surged 19% and 34% year on year respectively.”
The collaborative capabilities of the Engineering services (MEP and Water and Power), General Contracting, Oil and Gas, Rail and Infrastructure development continue to deliver strong performance quality work on project sites. Armed with a multicultural workforce, inherent financial strength and solid regional experience, the company’s outlook remains positive in terms of realizing greater profitability and improving productivity across MENA, South Asia and Europe.