Drake & Scull International (DSI), a leader in engineering and construction, posted a net profit of Dh63 million ($17.14 million) for the first quarter of the year, representing an increase of 47 per cent compared to the same period in 2012.

Revenues for the quarter stood at of Dh1.227 billion, marking a 58 per cent rise over the 2012 figures, while Earnings per Share (EPS) indicated a growth of 42 per cent with Dh0.025.

In comparison to the fourth quarter (Q4) of 2012 revenues were sustained at the same level whereas the net profit grew exponentially by 93 per cent and EPS realized a solid growth of 40 per cent.

Total project awards year to date reached Dh2 billion in Saudi Arabia, UAE and Qatar .The total order backlog closed at Dh9 billion as of March 31, representing a 17 per cent growth in comparison to Dh7.7 billion recorded during the same period last year.

Khaldoun Tabari, CEO of DSI said: “We continued to deliver consistent revenue growth and improved profitability in this quarter. Saudi Arabia and the UAE contributed 59 per cent and 19 per cent to the consolidated top line growth across all our business streams and remain our key markets for 2013.”

“Our operations across all markets are streamlined and cost reduction has been evident as our SG&A as percentage of revenue fell by 3.4 per cent from 7.7 per cent to 4.3 per cent year on year due increased productivity and cost efficiencies.

“We are well geared to deliver on our Dh 9 billion backlog and our priority remains in delivering improved margins and enhanced liquidity,” he added.

Osama Hamdan, CFO of DSI said: “Q1 witnessed exceptional operational efficiency as we have succeeded in doubling our profit and sustaining record high revenues compared to Q4 2012”.

“Our consolidated margins have improved and notably the MEP unit of our Engineering business generating 46 per cent of the quarterly revenues at a 7.5 per cent net margin. The general contracting business also contributed 51 per cent of the quarterly revenues at a steady net margin of approximately 6 per cent.  Remarkably, the Oil & Gas business achieved 15 per cent in net margin with higher contribution to the consolidated quarterly revenues.

“On the other hand ,we are very delighted to have restored our quarterly net operating cash flow to Dh 114 million  and we are  keen on improving operational liquidity to deliver on our  backlog.”

“Delivering sustainable revenues and healthy profit margins are the key highlights for 2013. We expect to continue with the same momentum in Q2 and we see great potential for all our operations in the GCC region,” Hamdan concluded. – TradeArabia News Service