Drake & Scull International PJSC (DSI), a regional market leader in integrated design, engineering and construction disciplines of Mechanical, Electrical and Plumbing (MEP), Civil Contracting, and Water and Power, reported today the financial results for the second quarter fiscal year 2011 ended June 30th 2011.
Revenues for the second quarter of 2011 were AED 739 million, compared with AED 412 million recorded during the second quarter of 2010 indicating a year over year revenue growth of 79 %.Net income was AED 55 million compared with AED 45 million reported in the second quarter of 2010 indicating a year over year net margin growth of 22 %. Earnings per share ("EPS") were AED 0.03, compared with 0.02 AED reported in same period of 2010.
The Backlog at the 30th of June 2011 reached a record high of AED 7.5 billion representing a 56 % increase in comparison to the same period in 2010.
Commenting on the company's financial results, Khaldoun Tabari, CEO of DSI, stated: “The increased impetus in revenue growth is attributable to the geographical diversity of our operations and group’s expertise, the variety in our business portfolio and the company‘s exposure to different market segments across various industries. We are satisfied with our revenue growth in the MEP and the civil business which recorded a year over year growth of 43 % and 376 % respectively. Returns from our Water and Power Subsidiary remain strong and reflect the effective integration of our service offering and the resilience of our successful business model. ”
Osama Hamdan, CFO of DSI added, “We are pleased to have achieved these results in a more volatile and uncertain climate in the region. This quarter's results demonstrate our on-going commitment to operational excellence across all of our lines of business. The quarter was marked by a phenomenal increase in revenue growth and a remarkable increase in net income growth. This year is a year of growth and integration for DSI. We are still in the expansion mode and we have incurred significant administrative costs and set up costs during the first half of the year. The acquisitions contributed to the growth in revenues, however the transactions incurred to finance and complete the acquisitions affected the net margins respectively. Once the acquisitions and expansion costs are fully rendered we expect higher top line and particularly bottom line growth.”
He concluded “Our primary focus for the second half of the year is controlling costs and efficiently allocating resources to optimize our expense base while ensuring growth in market share. We believe that the investment made in 2010 and the first half of this year, other things being equal, will yield robust financial results in the second half of the year and beyond.”
Since the beginning of 2011 DSI has managed to secure a series of Civil, MEP and Water & Power projects in Oman, Egypt, Kuwait, Saudi Arabia, UAE, Asia and Europe for a combined value of AED 3.4 billion and its backlog stands at AED 7.5 billion as of June 30th 2011. The Company has recently secured in July an AED 170 million MEP contract for Danat Al Emarat” Women & Children’s Hospital in Abu Dhabi. DSI remains bullish on its expectations for the second half of the year and is currently extensively bidding for projects in the MENA and Asian regions through its MEP, Civil and Water and Power divisions and is also proactively seeking to develop its integrated service offering and to diversify into various industry sectors in emerging markets.