Drake & Scull International PJSC (DSI), a regional market leader in integrated design, engineering and construction disciplines of Civil Contracting, Mechanical, Electrical and Plumbing (MEP), and Water and Power, reported a net profit of AED 43 million and AED 777 million in revenues for Q1 2012 representing a Top line growth of 20% in comparison to Q1 2011.
Earnings per share ("EPS") were AED 0.018 compared with AED 0.021 recorded during the same period last year. Total project awards to date reached AED 2 billion. The Order backlog closed at AED 7.7 billion as of the 31st of March representing a 3% growth in comparison to the figures recorded in Q1 2011.
Commenting on the results, Khaldoun Tabari, CEO of DSI said, “The Company is on track in achieving its growth objective for the year and is poised for considerable expansion in North Africa and Asia. We have seen our revenues increase and this is attributed to our sustained backlog and to the timely execution of the projects on hand. Expansion into Rail is underway and the company is currently prequalifying for major bids across the GCC. The Oil & Gas division is also eying projects in the region and we expect continuous growth for the Civil, MEP and Water and Power businesses.”
Osama Hamdan, CFO of DSI added, “The increase in revenues is based completely on organic growth. The company has been successful in reducing its receivables through improved collections during the quarter. The company effectively continues to diversify with the expansion into the rail business and establishment of new offices in India, Algeria and Iraq and has invested in related CAPEX in the current quarter. The overall margins reflect the momentum of execution on some projects along with additional finance costs as a result of the acquisition funding.”
“Our objective is to keep a firm grip on operational costs to improve net margins and maintain profitability .The Company continues to focus on Asia and North Africa apart from its primary markets and is exploring various prospects through its Civil, MEP and Water and Power divisions,” Hamdan Concluded.