Abu Dhabi: Dubai-based contractor Drake & Scull International PJSC (DSI), on Wednesday reported total revenue of Dh2.39 billion and net profit of Dh34 million for the first half of 2015 ending June 30.
The company achieved a 2 per cent year-on-year growth in revenue in H1 2015. According to it, 37 per cent of the consolidated group revenue was generated in Saudi Arabia which remains the largest market for DSI in H1 2015.
Operations in the UAE picked up momentum and contributed 28 per cent of the group revenue; up by 7 per cent as compared to the same period in 2014, the company said in a statement. It added that operations in Qatar improved and contributed 16 per cent of the group revenue for the period, up by 8 per cent compared to last year.
Operating profit for H1 2015 was Dh58 million down by 27 per cent compared to the same period in 2014. The decline in the operating margins is attributed to delays and cost overruns on projects across several markets, the company stated.
The UAE comprised the largest share of the new projected awarded to the company accounting for 75 per cent of the group awards and Oman comprised 25 per cent in the period. The majority of the new awards were secured in the hospitality sector which accounted for 58 per cent while the commercial and residential sectors stood at 24 per cent and 18 per cent respectively.
“We have met our top line target for the first half of the year; however, we continue to face pressure on our margins as a result of the delays on several projects,” stated Khaldoun Tabari, CEO and Vice-Chairman of Drake & Scull International PJSC. “Despite the bearish business sentiment across the sector, we’ve started Q3 2015 on a positive note with Dh305 million worth of new projects in Kuwait, and we remain focused on improving our operation efficiency and increased focus on collections across all markets.”
