DSI reports 68% and 76% year on year increase in revenues and net profit for the first nine months of 2013

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 3.56 billion and total Net Profit of AED145 million for the first nine months ended September 30^th 2013, representing a year on year top line and bottom line growth of 68% and 76% respectively. 

Earnings per Share (EPS) for same period stood at AED 0.054 indicating 80% growth compared to last year. 

DSI’s operational efficiency was the key highlight of the period as Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) reached AED 216 million compared to AED 100 million achieved during the same period in 2012. 

The company continues to reinforce its growing foothold in the region as total project awards year to date reached AED 6.74 billion in KSA, UAE, Qatar, Algeria, Jordan, India, Romania and Turkey. The total Order Backlog reached a record high closing at AED 12.4 billion as of the 30^th of September representing a 65.3 % year on year growth. 

Liquidity improved as net operating cash flow closed at AED 230 million as of the 30^th of September 2013. 

Irrespective of the summer seasonal trend, Q3 2013 witnessed significant operational improvement compared to last year. Revenuesand Net Profit for the period stood at AED 995 million and AED 30 million compared to AED 623 million and AED 8 million achieved in Q3 2012. 

Quarterly EPS reached AED 0.010 compared to AED 0.002 and EBITDA reached AED 45 million compared to AED 6.8 million recorded during to the same period last year. 

Commenting on the results, Khaldoun Tabari, CEO of DSI said, “Over the past nine months we have seen our revenues grow progressively with sustained gross and net margins across all our markets. For the first time in our history we have achieved AED 3.56 billion in revenues and AED 12.4 billion in Backlog. We have also managed to sustain positive momentum in our project wins which stands at an all-time high of AED 6.74 billion year to date. We remain confident of closing the year with a strong quarter with significant contribution from our operations in KSA, Jordan, and Algeria. Our engineering and general contracting businesses remain the key contributor to our revenue stream and Rail and Oil & Gas will continue to consolidate their presence in the GCC, North Africa and Levant. ” 

“The solid performance of our business streams during this period resulted in a 115% increase in our EBITDA compared to last year. Improved collections and advanced payments on major projects boosted our net operating cash flow from AED 83 million in the previous quarter to AED 230 Million in Q3 2013.Our working capital was also significantly improved as we continue to focus on reducing receivables days and improving our cash conversion cycle to maintain liquidity and to deliver on our backlog.” Khaldoun added. 

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.