Drake and Scull International PJSC posts Dhs78m net profit in impressive Q1 results

The company's net profits contained in its consolidated Q1 financial results - as approved by the DSI Board of Directors on Saturday (9 May 2009) - reflected a year-on-year increase of approximately 162%, and 54% viewed on a quarter-on-quarter basis.

DSI, the only specialist contractor listed on the Dubai Financial Market (DFM), listed on the exchange on 16 March 2009.

Khaldoun Tabari, DSI Vice-Chairman and CEO, said:

"We are delighted at our positive first quarter results and as a new comer to the Dubai Financial Market we are all grateful that we were able to deliver a solid performance with our first Q1 results as a listed company.."

Tabari expressed satisfaction in the figures and stressed how they accentuate a positive outlook for the financial health of the company into 2009.

"Going forward, my management team and I are determined to rigorously drive performance improvement and strengthen governance, while at the same time being alert to opportunities to expand our business in the region. As always, we remain committed to building shareholder value.

"As a company we remain well capitalised and within the Middle East our results reaffirmed our strong market position during the past quarter," he said.

Khaled Jarrar, DSI's Chief Financial Officer, added that the results could be seen as evidence of the company's strategy to manage risk and diversify its portfolio of activities into interrelated areas. "This has put us in great shape to weather the challenges that are affecting the sector at present," he said.

Mechanical, Electrical and Plumbing (MEP) activities turnover accounted for approximately 58% of total revenue, while Infrastructure, Water and Power (IWP) and Civil Engineering accounted for 19% and 23% respectively for the first quarter of 2009. DSI is currently working on 35 different projects, three of which have been awarded this year. The value of its backlogged projects from 2008 is worth over Dhs3bn while the total value of its current projects reaches an approximate Dhs6bn.

Jarrar said "DSI's sights are now fixed firmly on ensuring the company continues to thrive during the remainder of 2009, and beyond".

Supporting financial background:

- Drake & Scull International PJSC was incorporated on 17 November 2008 as a Public Joint Stock Company.

- As an LLC company under incorporation it recorded revenues of Dhs1,425m and net profit of Dhs158m as of 16 November 2008.

- For the year ended December 2008, the PJSC has existed in its new form for 1.5 months and recorded revenues to the tune of Dhs295m.

- The pro-forma full year results for 2008 recorded are revenues of Dhs1.72bn. (This shows an increase of 110 % compared to the previous year's Dhs820m). MEP activities turnover accounted for approximately 57% of total revenue, while IWP and Civil accounted for 19% and 24% respectively.

- The pro-forma net profit for the year is Dhs212m - an increase of approximately 101% on 2007 figures. This net profit includes the IPO income of approximately Dhs42m.