Drake & Scull International PJSC (DSI), a regional market leader in integrated design, engineering and construction disciplines of civil contracting, mechanical, electrical and plumbing (MEP), and water and power, reported a net profit of AED43 million and AED777 million in revenues for Q1 2012, representing a top line growth of 20 percent in comparison to Q1 2011. Earnings per share were AED0.018 compared with AED 0.021 recorded during the same period last year. Total project awards to date reached AED2 billion. The Order backlog closed at AED7.7 billion as of March 31, representing a 3 percent growth in comparison to the figures recorded in Q1 2011. Khaldoun Tabari, CEO of DSI, said "the company is on track in achieving its growth objective for the year and is poised for considerable expansion in North Africa and Asia. We have seen our revenues increase and this is attributed to our sustained backlog and to the timely execution of the projects on hand. Expansion into Rail is underway and the company is currently prequalifying for major bids across the GCC. The oil & gas division is also eying projects in the region and we expect continuous growth for the Civil, MEP and Water and Power businesses." Osama Hamdan, CFO of DSI, added "the increase in revenues is based completely on organic growth. The company has been successful in reducing its receivables through improved collections during the quarter. The company effectively continues to diversify with the expansion into the rail business and establishment of new offices in India, Algeria and Iraq and has invested in related CAPEX in the current quarter. The overall margins reflect the momentum of execution on some projects along with additional finance costs as a result of the acquisition funding." "Our objective is to keep a firm grip on operational costs to improve net margins and maintain profitability .The Company continues to focus on Asia and North Africa apart from its primary markets and is exploring various prospects through its Civil, MEP and Water and Power divisions," he noted.
