Drake & Scull International PJSC (DSI), a regional market leader in the integrated design, engineering and construction disciplines of Civil Contracting, Mechanical, Electrical and Plumbing (MEP), Water and Power, Rail and Oil and Gas reported today the preliminary financial results for the fourth quarter and fiscal 2012 ended December 31st.
Net profit for the fiscal year closed at AED 128 million and revenues at AED 3.3 billion an increase of 6.5 % over fiscal 2011.
Earnings per Share (EPS) Stood at AED 0.05 in comparison to AED 0.09 recorded last year. Total project awards announced in 2012 reached AED 5.4 billion in comparison to AED 4.4 billion awarded in 2011. The total Order backlog reached a record high of AED 9.1 billion representing a year on year increase of 30 %.
Q4 Revenues and Net profit closed at AED 1.2 billion and AED 46 million versus AED 600 million and AED 8 million recognized in Q3 respectively. The fourth Quarter top line and bottom line growth reflect the increased momentum in productivity across the Civil projects in KSA which were subdued in Q3 due to the seasonal trend and the summer holidays.
Commenting on the results, Khaldoun Tabari, CEO of DSI said, “We are satisfied with our strong earnings performance for both the fourth quarter and the full year across our operating segments and look forward to continued improvements in our key markets in 2013”.
“Our commitment to growth, leverage and returns continues to improve value for our shareholders as we have successfully managed in 2012 to add to our service portfolio Rail and Oil & Gas and to expand our operations reach into Iraq, Algeria and India while maintaining profitability”.
“The GCC continues to be our growth engine, and we expect in 2013 accelerated growth for DSI in emerging markets and particularly KSA and Qatar”.
Osama Hamdan, CFO of DSI added, “We made significant progress in the fourth quarter in enhancing our revenues and net profit growth as we have gained momentum across all subdued projects in Q3”.
“Our fundamentals are strong, and we are well positioned to continue with the same with the same momentum in Q1”.
“Despite current economic conditions, we continue to produce solid revenues and healthy profitability for fiscal 2012. The MEP and Water and Power businesses realized sustainable growth of 19 % and 4% respectively while the Oil & Gas division contribution accounted for 2 % of the consolidated revenues for fiscal 2012”.
“We have seen a slight decline of 38 % in the consolidated Net margins in comparison to last year which is primarily attributed to the growth in the civil business and the increase in the SGA associated with the launch of the Oil &Gas and Rail divisions in addition to the establishment of new offices in Iraq and India.
“Competition will continue to be a critical challenge to our pricing strategy. However, Gross margins and Net margins across all markets for 2013 are expected to stabilize since the cost of investment in new areas and business streams have been incurred in 2012”.
“We are confident that the strength of our record total backlog will guarantee steady revenue streams for the company in 2013 and we expect substantial announcements in Q1 for the Civil and MEP businesses in our primary markets and particularly in KSA and Qatar”.