DSI Delivers AED 63 million in Net Income for Q1 2013 a 47% increase Year on Year

May 1, 2013 - PRLog -- [Dubai, 01 May, 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 solid financial results for the first quarter  2013 ended  March 31st.

Net profit for Q1 closed at AED 63 million and revenues at AED 1.227 billion representing an increase of 47 % and 58 % compared to Q1 2012.

Earnings per Share (EPS) stood at AED 0.025 indicating a 42% growth compared to the same period last year.

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

Total project awards year to date reached AED 2 billion in KSA, UAE and Qatar .The total order backlog closed at AED 9 billion as of the 31st of March representing a 17% growth in comparison to AED 7.7 billion recorded during the same period last year.

Quarterly SG&A as a percentage of revenues was 4. 3 %. The net operating cash flow generated during the same period  was AED 114 million  and was substantially improved from AED negative 76 million and AED negative 448 million recorded in Q1 2012 and Q4 2012 respectively.

Commenting on the results, Khaldoun Tabari, CEO of DSI said, “We continued to deliver consistent revenue growth and improved profitability in this quarter. KSA and the UAE contributed 59 % and 19 % 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% from 7.7 % to 4.3% year on year due increased productivity and cost efficiencies”.

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

Osama Hamdan, CFO of DSI added, “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% of the quarterly revenues at a 7.5% net margin. The general contracting business also contributed 51% of the quarterly revenues at a steady net margin of approximately 6 %.  Remarkably, the Oil & Gas business achieved 15 % 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 AED 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’’.