Drake & Scull International posts AED 2.1 billion in revenues in first nine months of 2012

2012-11-18 06:02:15 -  Revenues earned in Q3 AED 623 million
 Net profit reported AED 8 million in Q3
 Total project awards year to date reached AED 2.7 billion

[Dubai, 14 November, 2012] Drake & Scull International PJSC (DSI), a regional market leader in integrated design, engineering and construction disciplines of Civil Contracting, Mechanical, Electrical and Plumbing (MEP), Water and Power, Rail and Oil & Gas reported today total revenues of AED 2.1 billion in the first nine of months of 2012. Net profit recorded AED 83 million for

the same period.

In the context of the seasonal trend and the associated slowdown in productivity across DSI’s major markets, revenues earned in Q3 are AED 623 million and profits are AED 8 million. Earnings per share ("EPS") reported AED 0.002 compared with AED 0.027 recorded during the same period last year.

The Order Backlog closed at AED 7.5 billion as of Sept 2012 while total project awards year to date reached AED 2.7 billion. The company achieved a substantial breakthrough into the Iraqi market in Q3 2012 by securing AED 736 million worth of projects in the Oil &Gas and Waste Water treatment sectors.

Commenting on the results Osama Hamdan, CFO of DSI said, “The Q3 results reflect an overall slowdown in the construction sector in the region. Productivity rates dropped across all our projects in the GCC and Africa. The procurement cycle in our operations dipped as result of the summer holiday season, thereby impacting the overall profitability. The company also extended its contract provisioning in the third quarter.”

The cumulative revenues for the first nine months of 2012 indicate a continued momentum and our backlog has been positively enhanced as a result of the recent project awards. The company has been able to record strong projects awards across all sectors year to date indicating sustainable growth and sound fundamentals.

Hamdan added, “The solid performance of our core MEP business has been strong with over 10% net margins and will continue to contribute to the growth of DSI .The Oil & Gas and Civil businesses are expected to enhance revenue growth during the last quarter. Expansion into Rail is on track and the company is prequalifying for major bids in that sector across the region.”