Drake & Scull posts 162% rise in Q1 profit

Drake & Scull International (DSI) saw its first-quarter profit rise 162 percent from a year earlier to AED 78mn ($21.2mn), the Dubai contractor announced on Sunday.

Shareholders for the company approved plans for the company to set up new units in Jordan and Libya, DSI said in a statement on the Dubai Financial Market (DFM).

At a board meeting on Saturday, shareholders also approved a 10 percent buyback of the company’s shares, said the firm, which specialises in mechanical, engineering and plumbing (MEP) and civil contracting.

It said it achieved net revenues of AED 488mn in the first quarter.

The firm’s net profit result represented a 54 percent increase from the previous quarter.

“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 solid performance with our first Q1 results as a listed company,” said Khaldoun Tabari, DSI vice-chairman and CEO, said.

“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.”

He said the company remained well capitalised, with the results reaffirming the company’s strong market position during the past quarter.

On Thursday, Tabari told Arabian Business the firm would start operations within 30 days on projects in Libya and Jordan.

DSI also discussed projects in the pipeline in Jordan (hotel), Libya (airport) and Thailand (residential) at the board meeting.

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

In March, Tabari said the firm would be focusing on countries which were still developing their infrastructure such as Syria, Egypt, Saudi Arabia, Libya and Qatar for future growth opportunities.

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