DSI profit jumps 61%

Drake & Scull International (DSI) on Thursday said its 2013 profits jumped 61 per cent to Dh185 million while revenues grew 47 per cent to Dh4.9 billion.

Earnings per share stood at Dh0.074 in comparison to Dh0.042 recorded in 2012.

The top line growth was driven by operations in KSA and the UAE markets each contributing 58 per cent and 29 per cent, respectively.

The General Contracting and Engineering businesses generated 28 per cent and 43 per cent of the cumulative Net profit achieved in 2013. The Oil & Gas division achieved substantial results in Southern Iraq and increased its yearly contribution to the bottom line to 29 per cent.

DSI continues to increase its market share in the MENA region as total project awards announced in 2013 reached Dh7.5 billion compared to Dh5.2 billion awarded in 2012. The GCC continues to be the key growth market for DSI with KSA, UAE and Qatar accounting for 42 per cent, 18 per cent and 11 per cent respectively of the new project awards in 2013.

Expansion into North Africa is well on track and the Algerian Market also witnessed a stronger momentum in project awards contributing 11 per cent of DSI’s new project awards in 2013. Expansion into the LEVANT region is also progressing cautiously with Jordan contributing 12 per cent to the new project awards in 2013 with the prestigious Saraya Aqaba development and the St Regis hotel awards.

The Order Backlog reached a record high of Dh12.0 billion representing a year on year increase of 36 per cent. KSA and the UAE remain the largest contributors to the backlog accounting for 42 per cent and 18 per cent respectively as of the 31st December 2013.

Commenting on the results, Khaldoun Tabari, CEO of DSI said, “2013 saw a lot of advancement in DSI’s fundamentals. Our skilled and highly motivated employees are a driving force in the success of our organisation and we all remain focused on our shared vision for further expansion and operational excellence. We are confident that the achievements we have seen in 2013 will be just as strong in the year ahead and DSI will continue to play a pivotal and leading role within the industry.

2013 was a year a continued growth for DSI in the GCC with major milestones achieved in North Africa, LEVANT and India. The investments we made over the last two years are now materializing to create a future of exceptional integrated engineering services with tremendous opportunities for DSI across all sectors in 2014."

Mukhtar Safi, CFO of DSI, added: “Our performance in fiscal 2013 demonstrated solid results. We have succeeded in achieving a 47 per cent growth in Revenues while sustaining our profitability margins. We continue to focus on cost reduction, return on capital and liquidity to drive sustainable performance across all our markets.

“We will remain selective in the new construction projects we undertake in order to minimize risk and preserve capital. The cash flow situation which was challenging in 2012 has significantly improved with cash flow from operating activities exceeding Dh206 Million for the year 2013. Our focused efforts to improve the working capital and to shorten the cash conversion cycle were the main contributors to the significant improvement in liquidity. We expect in 2014 accelerated growth for DSI in emerging markets and particularly across the Oil & Gas and Rail sectors,” Mukhtar concluded