Depa says Arab Spring to dampen 2011 results
Dubai, July 14, 2011
Interior contractor Depa Ltd said on Thursday that regional unrest would cool its full-year results as the uncertainty prompted a delay in signing several large projects.
Depa's backlog was 2.3 billion dirhams at the end of June, similar to the backlog amount at the end of March, it said in a statement to Nasdaq Dubai.
'Uncertainty generated by the Arab Spring has delayed the signing of a number of larger projects in the Mena region and this lag effect will dampen full year market expectations,' it said.
The Dubai-based firm, which has been rapidly expanding in the region to weather a sharp downturn in its home property, has signed around 800 million dirhams ($217.81 million) worth of projects so far this year, it added.
Recent contract wins include projects in India and Azerbaijan. Depa reported a 2010 net loss of 198.2 million dirhams as the firm was hurt by claims over the world's largest tower in Dubai, Burj Khalifa, and goodwill impairment charges. -Reuters