Drake & Scull net profit surges 76pc
Dubai, November 6, 2013
Drake & Scull International (DSI), a regional market leader in integrated design, engineering and construction sectors, has reported a net profit of Dh145 million ($39.4 million) for the first nine months, up 76 per cent over the same period last year.
The Dubai-based contractor said its nine-month revenue of Dh3.56 billion represented a year-on-year top line growth of 68 per cent. The earnings per share (EPS) for same period stood at Dh0.054 indicating 80 per cent 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 Dh216 million compared to Dh100 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 Dh6.74 billion in Saudi, UAE, Qatar, Algeria, Jordan, India, Romania and Turkey, said the company in its statement.
The total order backlog reached a record high closing at Dh12.4 billion as of the 30th of September representing a 65.3 per cent year on year growth, while liquidity improved as net operating cash flow closed at Dh230 million as of September 30, 2013, it added.
DSI said that irrespective of the summer seasonal trend, the third quarter witnessed significant operational improvement compared to last year. Revenues and net profit for the period stood at Dh995 million and Dh30 million compared to Dh623 million and Dh8 million achieved last year, it noted.
Quarterly EPS reached Dh0.010 compared to Dh0.002 and Ebitda reached Dh45 million compared to Dh6.8 million recorded during to the same period last year, the statement added.
Commenting on the results, CEO Khaldoun Tabari 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 Dh3.56 billion in revenues and Dh12.4 billion in backlog."
"We have also managed to sustain positive momentum in our project wins which stands at an all-time high of Dh6.74 billion year to date. We remain confident of closing the year with a strong quarter with significant contribution from our operations in Saudi, Jordan, and Algeria," stated Tabari.
"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," he added.
According to him, the solid performance of DSI business streams during the period resulted in a 115 per cent increase in its Ebitda compared to last year. "Improved collections and advanced payments on major projects boosted our net operating cash flow from Dh83 million in the previous quarter to Dh230 million in the third quarter," he stated.
"Our working capital 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.-TradeArabia New Service