Drake and Scull announces 77% YOY net margin growth
Highlight of Q3 2011 financial results
Drake & Scull International PJSC (DSI), has announced a two fold growth in profits compared to 2010, despite a “challenging” macro-economic environment.
Specialising in integrated design, engineering and construction disciplines for MEP, civil contracting and water and power, quarterly Revenues reached AED 847 million and net income stood at AED 60 million – compared to AED 432 million and AED 34 million respectively, that was reported for the same period of 2010.
The figures indicate a YOY increase of 96 % in revenues and 77 % in net income. Earnings per share (“EPS”) now stand at AED 0.03, compared with AED 0.02 recorded in Q3 2010.
“We are satisfied with DSI’s solid performance across all our subsidiaries in the third quarter despite a challenging macro environment,” commentedCEO Khaldoun Tabari.
“We have managed to grow our quarterly revenues and profits vis -a- vis 2010 by approximately two folds. Our AED 2.23 billion revenues for the first nine months 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,” he added, saying continued growth was expected for Q4.
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.
“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,” said CFO Osama Hamdan.
“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 Q2 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.
