Depa announces 22% net profit rise for 2008

BURJ INTERIOR: The Burj Dubai is one of Depa's on-going projects for 2009, it said.

Depa Limited, an interior contracting firm has posted a net profit increase of 22 percent for last year, down from an anticipated 40 percent, following a hike in contingency plans, it announced on Tuesday.

The company, which is one of the world’s largest interior contractors, said it had increased its project contingencies for 2008 by 250 percent above normal, as a result of the current economic crisis - almost halving their net profit growth.

Net profit growth was 20 to 22 percent for the fiscal year ending Dec. 31, 2008, it said in a press release.

Depa’s current projects from 2008 include the Burj Dubai, Dubai Metro, Mazagan Resort in Morocco and Marina Bay Sands Resort in Singapore – which helped generate $37m in revenue growth last year.

Going forward, the company was expecting revenue and profit growth of between 30 and 35 percent for 2009, excluding contingencies, and continued growth in 2010, the statement said.

It already had orders for 17 projects to the value of $286m for the first quarter of 2009 between Morocco, Egypt, Saudi Arabia and the UAE, it added.

This includes prestigious works such as the fit-out of Palazzo Versace Hotel in Dubai and the refurbishment of the Minister Office of Defense and Aviation in Saudi Arabia.

Depa added that because it only went on site to finish a building, before occupation, it was extremely unlikely that any of its projects would be postponed or cancelled.

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