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Tue 27 Nov 2012 05:15 PM

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Dubai's Depa returns to profit in Q3

Burj Khalifa interior contractor says its contract income during third quarter rises by 11%

Dubai's Depa returns to profit in Q3
Depa CEO Mohannad Sweid.

Dubai-based interiors contractor Depa said on Tuesday that it returned to profit in the third quarter of this year after making a loss in the year-earlier period.

Depa, the company that fitted out Dubai's Burj Khalifa, the world’s tallest tower, said it made a net profit of AED3.4m in Q3 compared to a AED16m loss in Q3 2011.

The company added that contract income was AED420m, an increase of 11 percent compared to same period last year and relatively flat on the previous quarter (AED 447m).

Depa said the Q3 performance was boosted by Design Studio, its Asian business, which saw its contract income rise by 102 percent to AED118.65m and recorded a 24th consecutive quarter of profitability.

For the nine month period to end-September, Depa saw an increase of 11 percent in contract income to AED1.2bn and a net loss of AED107m.

The company said the overall loss was primarily due to three specific contract-related project issues, the most significant being the termination of the Linder Depa JV contract at the New Doha International Airport.

Depa said it has a "very strong" pipeline of future projects, especially in the GCC and South East Asia.

During 2012, Depa said it has won over AED1.1bn of new projects including AED339m worth of projects in the third quarter.

Mohannad Sweid, chief executive, said: “The company continues to perform well and we are seeing pleasing levels of new business in the GCC and South East Asia.

"Whilst our bottom line performance has been impacted by a small number of contract issues it would be wrong to let that mask the good work being undertaken across regional projects and the renewed confidence emerging across our end markets.

"We are starting to see real estate markets recover, especially in areas such as hospitality and retail where we have a strong focus.”

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