DSI boosts profit and growth in tough Q2

DSI vice chairman and CEO Khaldoun Tabari.

Drake & Scull International PJSC (DSI) has announced its consolidated financial results for the second quarter of the current fiscal year, reflecting a solid growth trajectory. The company reported a consolidated quarterly net profit of US $24.5 million (AED90 million), a quarter-on-quarter growth of 15% and a total net profit of $45.7 million for the first six months of the year.

The company reported $139.4 million net revenue for the second quarter, a quarter-on-quarter increase of 5%. This brings DSI’s consolidated net revenues to $272.3 million for the first half of 2009.

Khaldoun Tabari, DSI vice-chairman and CEO, said: “DSI’s ability to anticipate change and adapt to the transforming market dynamics ahead of time has enabled us to produce strong financial results in a contradictory economic scenario. The strong foundation we laid in focusing on creating customer value through integrated service offerings have enhanced our readiness to execute in the long term.

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“Our financial results also support our inorganic growth strategy, judicious investments, and focus on regional expansion. In the coming months, DSI will announce many mutually beneficial alliances that will further enhance our shareholder value.”

Tabari reiterated that DSI’s expansion strategy was on track, confirming that announcements on potential acquisitions across the Middle East should be expected later this year.

“I believe that our financial results will infuse positivity into the market given the bleak economic scenario, especially for the construction and reality sector, DSI’s results are not only encouraging, but also have the potential to uplift the investor mood.”

DSI’s existing projects in the GCC continued as normal and further growth announcements around the company’s projects in the region could also be expected in the near future.

Khaled Jarrar, DSI’s chief financial officer, said: “DSI’s good second quarter results demonstrate stability, growth and our commitment to enhance value for our shareholders, clients, staff, and investors.

“Our consistent results each quarter are an indication that DSI has strong fundamentals and is dedicated to providing shareholder value through its comprehensive range of service offerings and diverse business portfolio. DSI has a robust business model and futuristic development strategy that will accelerate our growth and assist us in seeking positive yields.”

According to Jarrar, the second quarter results are a reflection of the management’s successful approach of managing the current economic conditions which has contributed greatly in allowing the company to sidestep the current challenges facing the industry.

Jarrar said that managing operating costs remain a key priority to strengthen DSI’s capital position and shareholder value.

From its public listing, DSI accumulated approximately $337.6 million funds, which the company plans to leverage for inorganic growth through regional acquisition

The company is currently evaluating potential acquisitions in similar sectors in Saudi Arabia, Qatar and Kuwait.