Contractor achieves overall net profit of $1.9mn for first quarter of the year, following a net loss of $228 mn in Q1 2017
Drake and Scull International, the Dubai-based construction and engineering contractor, has achieved an overall net profit of $1.9 million for the first quarter of the year, compared to a net loss of $228 million declared during the same period in 2017, it has been announced.
According to first quarter financial results released by the company, the overall revenue stood at $188.6 million, compared to $216 million achieved in the same period last year. The company also reported a gross profit of $27.49 million, compared to a gross loss of $13.34 million in 2017.
The operating profit for the first three months was $12.25 million versus the operating loss of $221 million reported in the previous year, the company added.
DSI’s total project backlog stood at $1.47 billion, supported by the $83 million worth of projects secured – primarily in the home market of UAE – since January 2018.
In a statement, the company said that the improved results were primarily down to the positive momentum achieved in the first quarter. It explained that core metrics related to operational performance across key markets and segments showed signs of business stabilisation.
Through its ongoing business rationalisation drive, the company has unlocked additional value in key areas, which were previously impaired by the impact of legacy issues on certain projects, it added.
“We are pleased to start the financial year with a return to profitability. The various reforms implemented by the new management have added significant strategic and operational impetus, in terms of efficiency and productivity measures achieved during the quarter,” said Rabih Abou Diwan, investor relations director at DSI.
“We will continue to leverage the synergies across our operating segments to improve our operating performance by reducing our overheads and by recalibrating our services portfolio to drive margin accretion.
“Our target is to sustain our quarterly performance across all operating segments and key markets throughout the fiscal year and to secure profitable projects with our key strategic clients in the region,” remarked Abou Diwan