DSI boosts revenue 79% in Q2 2011
Company: Q2 saw "phenomenal increase in revenue growth and net income"
Drake and Scull International’s revenues for the Q2 2011 were AED739m ($201.1m), up from AED412m ($112.1m) for the same period in 2010, the company announced earlier this month.
The financial results for the quarter revealed year on year revenue growth of 79%, while net income rose from AED45m ($12.25m) in Q2 2010 to AED55m ($14.9m).
“We are pleased to have achieved these results in a more volatile and uncertain climate in the region,” Osama Hamdan, DSI's chief financial officer said.
“The quarter was marked by phenomenal increase in revenue growth and a remarkable increase in net income growth. This year is a year of growth and integration for DSI. We are still in expansion mode and have incurred significant administrative costs and set up costs during the first half of the year,” he said.
“The acquisitions contributed to the growth in revenues, however the transactions incurred to finance and complete the acquisitions affected the net margins respectively. Once the acquisitions and expansion costs are fully rendered, we expect higher top line and particularly bottom line growth,” he explained further.
As of June 30th 2011, DSI's order book stood at a record high of AED7.5bn ($2.04bn), which represented a 56% increase in comparison to the same period last year.
Khaldoun Tabari, chief executive officer of DSI, said that year’s financial results were due to the ‘geographical diversity’ of the company’s operations and the variety of its business portfolio.
“We are satisfied with our revenue growth in the MEP and the civil business, which recorded year on year growth of 43% and 376% respectively. Returns from our water and power subsidiary remains strong and reflect the effective integration of our service offering and the resilience of our business model,” he added.
Hamdan said DSI’s primary focus in the second half of the year would be to control costs and effectively allocate resources.
“We believe that the investment made in 2010 and in the first half of this year, other things being equal, will yield robust financial results in the second half of the year and beyond,” he said.
Having recently secured an AED7.5bn MEP contract for the Danat Al Emarat Women’s and Children’s Hospital in Abu Dhabi, DSI’s expectations for the remainder of the year are high. The company is currently extensively bidding for projects in the MENA and Asian regions through its MEP, Civil and Water and Power divisions.