DSI reports $9m net profit in H1 2015
Operations in the UAE picked up momentum and contributed 28% of the group revenue; up by 7% as compared to the same period in 2014, followed by operations in Qatar
Contracting firm Drake & Scull International reported a net profit of $9.2m (AED34m) for the first half of 2015 ended 30 June, 2015.
Total revenue for the company achieved a 2% y-o-y growth to $626m (AED2.3bn) in H1 2015, according to the bourse filing by the company.
The statement said that 37 % of the consolidated group revenue was generated in KSA which remains the largest market for DSI in H1 2015.
Operations in the UAE picked up momentum and contributed 28% of the group revenue; up by 7% as compared to the same period in 2014, followed by operations in Qatar contributing 16% of the group revenue for the period.
Revenue from the engineering business reached a high contributing 60% of the group revenue, up 11% as compared to the same period in 2014.
The general contracting business contributed 35% of the group revenue, down by 8% as compared to the same period last year. Operating profit for H1 2015 was $15.7m (AED58m) down by 27% as compared to the same period in 2014 owing to delays and cost overruns on projects across several markets.
Total new project awards for the first half of the year reached $381m (AED1.4bn) taking the group backlog value to $3.5bn (AED13.2bn) as of June 30th 2015.
The UAE comprised the largest share of the new awards accounting for 75% of the group awards and Oman comprised 25% in H1 2015. The majority of the new awards were secured in the hospitality sector which accounted for 58% of the group awards while the commercial and residential sectors stood at 24% and 18% respectively.
Commenting on the results, Khaldoun Tabari, CEO and vice chairman of DSI said, “We have met our top line target for the first half of the year; however, we continue to face pressure on our margins as a result of the delays on several projects. Despite the bearish business sentiment across the sector, we’ve started Q3 2015 on a positive
note with $83m (AED305m) worth of new projects in Kuwait and we remain focused on improving our operation efficiency and increased focus on collections across all markets.”