DSI announces financial results for second quarter of 2009

DSI's Board of Directors approved the financial results today, which reflect a solid growth trajectory, reporting a consolidated quarterly net profit of Dhs90m, a quarter-on-quarter growth of 15% and a total net profit of Dhs168m for the first six months of the year.

The company reported Dhs512m net revenues for the second quarter, a quarter-on-quarter increase of 5%. This brings DSI's consolidated net revenues to Dhs1bn for the first half of 2009.

Earnings per share for the first half of 2009 are Dhs0.08.

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."

Tabari added, "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.

Tabari said, "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."

Jarrar added, "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 Dhs1.24bn 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.

DSI is the only specialist contractor listed on the Dubai Financial Market (DFM).