DSI posts Dh145m 9-month profit

Drake & Scull International (DSI) reported today total revenues of Dh3.56 billion and net profit of Dh145 million for the first nine months ended September 30th 2013, representing a year on year top line and bottom line growth of 68 per cent and 76 per cent, respectively.

Earnings per Share (EPS) for same period stood at Dh0.054 indicating 80 per cent growth compared to last year.

DSI’s operational efficiency was the key highlight of the period as Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) reached Dh216 million compared to Dh100 million achieved during the same period in 2012.

The company continues to reinforce its growing foothold in the region as total project awards year to date reached Dh6.74 billion in KSA, UAE, Qatar, Algeria, Jordan, India, Romania and Turkey. The total Order Backlog reached a record high closing at Dh12.4 billion as of the 30th of September representing a 65.3 per cent year on year growth.

Liquidity improved as net operating cash flow closed at Dh230 million as of the 30th of September 2013.

Irrespective of the summer seasonal trend, Q3 2013 witnessed significant operational improvement compared to last year. Revenues and Net Profit for the period stood at Dh995 million and Dh30 million compared to Dh623 million and Dh8 million achieved in Q3 2012.

Quarterly EPS reached Dh0.010 compared to Dh0.002 and EBITDA reached Dh45 million compared to Dh6.8 million recorded during to the same period last year.

Khaldoun Tabari, CEO of DSI, said: “Over the past nine months we have seen our revenues grow progressively with sustained gross and net margins across all our markets. For the first time in our history we have achieved Dh3.56 billion in revenues and Dh12.4 billion in Backlog. We have also managed to sustain positive momentum in our project wins which stands at an all-time high of Dh6.74 billion year to date. We remain confident of closing the year with a strong quarter with significant contribution from our operations in KSA, Jordan, and Algeria. Our engineering and general contracting businesses remain the key contributor to our revenue stream and Rail and Oil & Gas will continue to consolidate their presence in the GCC, North Africa and Levant. ”

“The solid performance of our business streams during this period resulted in a 115 per cent increase in our EBITDA compared to last year. Improved collections and advanced payments on major projects boosted our net operating cash flow from Dh83 million in the previous quarter to Dh230 Million in Q3 2013.Our working capital was also significantly improved as we continue to focus on reducing receivables days and improving our cash conversion cycle to maintain liquidity and to deliver on our backlog.” Khaldoun added.

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