Dubai: DSI posts AED7mn net profit for Q1 2018
Dubai-based contractor, Drake & Scull International (DSI), achieved a net profit of AED7mn for the first quarter of 2018 as compared to the net loss of AED839mn during Q1 2017.
The company reported an overall revenue in Q1 2018 at AED693mn as compared to AED796mn achieved in Q1 2017. Meanwhile, DSI also reported a Q1 2018 gross profit of AED101mn as compared to the gross loss of AED49mn reported during Q1 2017, as well as a Q1 2018 operating profit of AED45mn versus an operating loss of AED812mn reported during Q1 2017.
The total project backlog for DSI stood at AED5.4bn, supported by the AED305mn worth of projects secured primarily in the home market (UAE) since January 2018.
The company attributes the improved results to the positive momentum achieved during the first quarter, according to the statement on Dubai Financial Market. Core metrics related to operational performance across key markets and segments showed signs of business stabilisation. Through its ongoing business rationalisation drive, the company also unlocked additional value in key areas, which were previously impaired by the impact of legacy issues on certain projects.
Rabih Abou Diwan, investor relations director, DSI, commented: “We are pleased to start the financial year with a return to profitability. The various reforms implemented by the new management have added significant strategic and operational impetus, in terms of efficiency and productivity measures achieved during the quarter. We will continue to leverage the synergies across our operating segments to improve our operating performance by reducing our overheads and by recalibrating our services portfolio to drive margin accretion.
“Our target is to sustain our quarterly performance across all operating segments and key markets throughout the fiscal year and to secure profitable projects with our key strategic clients in the region.”