Drake & Scull International reports solid net income growth for third quarter 2011

Drake & Scull International PJSC (DSI), a regional market leader in integrated design, engineering and construction disciplines of Mechanical, Electrical and Plumbing (MEP), Civil Contracting, and Water and Power, declared today solid financial results for the third quarter 2011 marked by a substantial increase in Revenues and Net Income growth. 

Quarterly Revenues reached AED 847 million and Net Income was AED 60 million compared to AED 432 million and AED 34 million reported for the same period in Fiscal 2010. The figures indicate a year over year increase of 96 % in Revenues and 77 % in Net Income. Earnings per share ("EPS") were AED 0.03, compared with 0.02 AED recorded in Q3 2010.

On a quarterly basis, Revenues and Net Income recorded increases of 15 % and 10% respectively when compared with Q2 2011 while the total projects awards announced year to date reached AED 3.6 billion. 

Commenting on the company's financial results, Khaldoun Tabari, CEO of DSI, stated: “We are satisfied with DSI’s solid performance across all our subsidiaries in the third quarter despite a challenging macro environment. We have managed to grow our quarterly revenues and profits (year on year) vis -a- vis 2010 by approximately two folds. Our AED 2.23 billion revenues for the first 9 month in 2011 have already exceeded the total revenues of fiscal 2010 which reached AED 1.85 billion. This quarter earnings reflect our operating capability, portfolio strength and financial flexibility. We expect to maintain our growth during quarter four. This sustained performance is an outcome of our strong team dynamics and the synergy with our acquired businesses that are currently under integration with the DSI PJSC platform driving continual replenishment of the existing backlog to support future earnings.”

Osama Hamdan, CFO of DSI added, “ Quarter three was understandably a slow quarter with the seasonal effects of both summer and Ramadan which to an extent constrained productivity, affected the backlog growth and rendered the bottom line margins slightly lower in comparison to Q2 2011. Additionally, we expect a pickup in our backlog in the fourth quarter as we anticipate new project announcements .Strategic cost reduction remains a key management focus and our increasing operating profit margin is a clear evidence of our constant efforts to control costs and optimize productivity.” Hamdan concluded.

The company started its operations in Algeria during the second quarter and established an office in India where it is pursuing an aggressive expansion strategy. DSI is currently extensively bidding for projects in the MENA and Asian regions through its MEP, Civil and Water and Power divisions and is also proactively seeking to develop its integrated service offering and to diversify into various industry sectors in emerging markets.