|
Top line growth of 8.3 % in comparison to H1
2011 [Dubai, 15 August, 2012]Drake &
Scull International PJSC (DSI), a regional market
leader in integrated design, engineering and
construction disciplines of Civil Contracting,
Mechanical, Electrical and Plumbing (MEP), Water and
Power, Rail and Oil & Gas reported total revenues of
AED 1.494 billion and Net profits of AED 75 million for
the first half of 2012 representing a top line growth
of 8.3 % and a bottom line contraction of 29 % in
comparison to the first half of 2011.
Year to date DSI secured contracts worth AED 1.6
billion which will guarantee a steady revenue stream
for the company in the second half of the year. The
company managed to sustain its order Backlog at AED 7.4
billion recorded as of the
30thof June 2012.
For Q2 2012 the company recorded a net profit of
AED 32 million and AED 717 million in revenues. The
quarterly figures indicate a 3 % decline in revenues
and 42 % drop in net Earnings compared to Q2 2011.
Earnings per share ("EPS") were AED 0.012
compared with AED 0.024 recorded during the same period
last year.
Project awards for the Quarter reached AED 646
million secured in Abu Dhabi, Dubai and Oman.
Commenting on the results Osama Hamdan, CFO of
DSI said, "We have managed to report profits and
higher revenue growth in the first half of the year
despite challenging market conditions and in comparison
to the first half of 2011. Lower productivity on major
projects and especially in KSA contributed to the
decrease in revenues in Q2. Finance cost from
acquisition funding and contracts provisioning continue
to hinder profit growth. Our exposure to the Euro
currency through our German Subsidiary and the volatile
fluctuation in foreign exchange also contributed to the
decline in earnings. Overall revenue growth for H1
indicates the improvement in operational efficiency,
the focus in the second half will be to improve
profitability and achieve higher earnings.
The MEP business will continue to be the main
driver of our net margin growth while gross margins are
expected to improve after all directs expenses related
to the establishment of news offices in Iraq, India and
Algeria are completely rendered and incurred.
The company continues successfully in reducing
its receivables through improved collections during the
quarter. Contract provisioning is also expected to be
extended to the second half of the year which is normal
due the cyclical nature of the construction business in
the region. However, the productivity on major projects
across the region is expected to improve," Hamdan
Concluded.
The results of the first half of the year and the
revenue growth in comparison to the first half of 2011
indicates that the company is well on track in
achieving its growth objectives for the year. Expansion
into Rail and Oil & Gas is underway and both business
units are expected to join the revenue stream of the
company in the second half of the year.
- Ends -
About Drake & Scull
InternationalPJSC
Drake & Scull International PJSC (DSI) is a
regional market leader delivering world class quality
projects via end to end solutions that provide
integrated design, engineering and construction
disciplines of Mechanical Electrical and Plumbing
(MEP), Civil Contracting, and Water & Power
Infrastructure, through People, Innovation, and
Passion.
DSI established its first office in Abu Dhabi in
1966, and has since expanded operations to encompass
offices in Dubai, Egypt, Kuwait, Libya, Oman, Saudi
Arabia, Syria, Qatar, Jordan and Thailand, as well as
managing projects in Europe and other parts of North
Africa.
DSI 's main business streams include Drake &
Scull International, which serves as the MEP arm, Drake
& Scull Construction (DSC), which is the General Civil
Contracting unit and Drake and Scull Water & Power
(DSWP), which focuses on the Water & Power and
Infrastructure sector.
In 2008, DSI offered 55% of its shares to the
public and the IPO was oversubscribed 101 times. Ernst
& Young ranked the IPO among the top 20 global IPOs in
2008.
DSI has since then used the funds to integrate,
establish and acquire businesses that compliment its
corporate strategy of expansion into new markets, via
organic and inorganic growth.
The fully Integrated Management Systems,
certified to ISO 9001:2008, ISO 14001:2005 and OSHAS
18001:2007 standards are compliant with leading
building, health and safety regulations, as well as
sound environmental and energy management
procedures.
DSI is a leader through experience, and has
established a regional leadership position over 44
years of successfully completing the most complex
projects on time, within budgets and matching set
quality parameters.
DSI has completed many prestigious projects in
the region for over four decades, and has helped shape
the region's skyline from within. For more information, please contact: Drake & Scull International PJSC Rabih Abou Diwan Corporate Communication Officer T: +971 4 8112300 M: +971 50 5500891 Email: Rabih.Aboudiwan@drakescull.com | |||
distributed by
 |