The past 12 months have been tough for many of the Gulf’s construction outfits, not least Drake & Scull International (DSI). In Q1 2016, the UAE-based contractor saw its net profit fall to $2.5m (AED9.5m), down 61% from the $7.5m (AED27.8m) achieved during Q1 2015.
Profits may have dropped year on year, but Khaldoun Tabari and his team are still in the black. Speaking after the release of the results, DSI’s vice chairman and chief executive officer said: “We are pleased to start 2016 on a positive note by returning to profitability in the first quarter of the year. The effects of strategic decisions and unprecedented measures initiated by DSI’s management last year have started to materialise, and have aided our determined efforts to continue the refinement and consolidation of our businesses in our key markets.”
In a bid to further boost profits during the coming year, Tabari said that DSI will focus on the efficient use of its working capital through financial discipline, “with an aim to generate free cash flow”.
“Besides our profitability, we remain committed to improving our liquidity, which remains one of the key areas of focus for our corporate strategy for the year,” he added.