Drake & Scull International PJSC (DSI), a regional market leader in the integrated design, engineering and construction disciplines of Civil Contracting, Mechanical, Electrical and Plumbing (MEP), Water and Power, Rail and Oil and Gas reported today total Revenue of AED 2.39 billion and Net Profit of AED 34 million for the first half of 2015 ended June 30th.
The company achieved a 2% YoY growth in Revenue in H1 2015. 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. Operations in Qatar improved and contributed 16% of the group revenue for the period, up by 8% compared to last year.
Revenue from the Engineering business reached a record 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 AED 58 million down by 27% as compared to the same period in 2014. The decline in the operating margins is attributed to delays and cost overruns on projects across several markets.
Total new project awards for the first half of the year reached AED 1.42 billion taking the group Backlog value to AED 13.24 billion as of June 30th 2015. The Engineering and General Contracting businesses constituted 87% and 13% of the new project awards secured in the first half of the year respectively. 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 Drake & Scull International PJSC, 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 AED 305 Million worth of new projects in Kuwait and we remain focused on improving our operation efficiency and increased focus on collections across all markets.”