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Thu 2 May 2013 08:28 AM

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Dubai's Drake & Scull posts 47% rise in Q1 profit

Contracting giant says it has streamlined operations across all markets to cut costs

Dubai's Drake & Scull posts 47% rise in Q1 profit
Drake & Scull CEO Khaldoun Tabari.

Dubai-based contractor Drake & Scull International has posted a 47 percent increase in net profit for the first quarter of 2013 compared to the same period last year.

The company reported net profit of AED63m on revenues of AED1.227bn which were 58 percent higher than Q1 2012, saying the company had streamlined its operations to cut costs.

In comparison to Q4 2012, revenues were sustained at the same level whereas the net profit grew by 93 percent, DSI said in a statement.

It added that total project awards year to date reached AED2bn in Saudi Arabia, the UAE and Qatar.

The company's total order backlog closed at AED9bn as of March 31 representing a 17 percent growth on the same period last year.

Commenting on the results, Khaldoun Tabari, CEO of DSI said: “We continued to deliver consistent revenue growth and improved profitability in this quarter. Saudi Arabia and the UAE contributed 59 percent and 19 percent to the consolidated top line growth across all our business streams and remain our key markets for 2013.

“Our operations across all markets are streamlined and cost reduction has been evident."

He added: “We are well geared to deliver on our AED9bn backlog and our priority remains in delivering improved margins and enhanced liquidity”.

Osama Hamdan, CFO of DSI added: “Q1 witnessed exceptional operational efficiency as we have succeeded in doubling our profit and sustaining record high revenues compared to Q4 2012.

“Delivering sustainable revenues and healthy profit margins are the key highlights for 2013. We expect to continue with the same momentum in Q2 and we see great potential for all our operations in the GCC region."

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